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admin201108.pdf
Technical efficiency is an important index to decide whether a specific firm is productive or profitable since it is to measure production efficiency derived from output and input factors of the firm. Comparison of efficiencies of firms enables an individual firm to examine and improve its business conditions and to establish management strategies. Furthermore, technical efficiencies can be utilized to figure out the productivity level of firms of a certain industry and to compare it with that of other countries, so that they would be important data for establishing policies for the economically viable and competitive development of an industry. |