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Table 1 Maximum likelihood estimates for parameters of the inefficiency function for six manufacturing industries in Sweden and a pooled estimate, 1980–2005

From: Impacts of foreign direct investment on efficiency in Swedish manufacturing

Variable Pooled, all sectors Forest Beverage Chemical Concrete Metal Electro
Stochastic production frontier
β k 0.5632*
(−0.0286)
0.1673
(0.1312)
0.1250
(0.1650)
0.3626*
(0.0357)
0.4134*
(0.0455)
1.0031*
(0.0675)
0.7984*
(0.0599)
β l 0.3686*
(0.0337)
0.6423*
(0.1442)
0.3194**
(0.1528)
0.5031*
(0.0659)
0.5789*
(0.0921)
0.1126
(0.0704)
−0.0349
(0.0940)
β t 0.0185
(0.0102)
−0.0367**
(0.0155)
0.0280
(0.0218)
0.0234*
(0.0068)
0.0576*
(0.0145)
−0.0178
(0.0106)
−0.0161
(0.0101)
β kk 0.1869*
(0.0178)
0.0206
(0.0765)
−0.0252
(0.1088)
0.1680*
(0.0198)
0.2665*
(0.0694)
0.3849*
(0.0345)
0.1605*
(0.0324)
β kl −0.1686*
(0.0196)
−0.0876
(0.0810)
0.0104
(0.1310)
−0.2489*
(0.0437)
−0.2252**
(0.0934)
−0.2712*
(0.0360)
0.0233
(0.0429)
β kt −0.0076*
(0.0012)
−0.0078*
(0.0029)
−0.0210**
(0.0105)
0.0001
(0.0021)
0.0116**
(0.0047)
−0.0187*
(0.0028)
−0.0175*
(0.0033)
β ll 0.0880*
(0.0318)
0.0233
(0.0931)
−0.4320**
(0.2034)
0.4614*
(0.0910)
0.4670*
(0.1334)
0.0192
(0.0603)
−0.3437*
(0.1112)
β lt 0.0096*
(0.0017)
0.0101
(0.0038)
0.0192
(0.0104)
−0.0080
(0.0043)
−0.0013
(0.0061)
0.0183*
(0.0036)
0.0214*
(0.0057)
β tt 0.0010*
(0.0003)
0.0025*
(0.0005)
0.0040
(0.0017)
0.0002
(0.0005)
0.0074*
(0.0019)
0.0016*
(0.0006)
0.0035*
(0.0007)
Constant −0.0311
(0.1065)
1.4077*
(0.2698)
0.5334*
(0.1691)
−0.2378*
(0.0567)
−1.0186*
(0.0678)
0.1270
(0.1082)
0.4172*
(0.0830)
Technical inefficiency model
δ FO −0.2117*
(0.0217)
−0.3954*
(0.0296)
−0.4565*
(0.0956)
0.9094
(0.5863)
0.0140
(0.0580)
−0.0230
(0.1407)
−1.1771*
(0.3475)
δ k/l 0.0814*
(0.0116)
−0.0609
(0.1169)
−0.4034**
(0.1813)
3.1548**
(1.6092)
0.1460*
(0.0389)
0.4836*
(0.0757)
0.3005
(0.1676)
δ k·l −6.08 × 10−08
(3.21 × 10−08)
−0.0185*
(0.0033)
−0.1065*
(0.0268)
−1.5313
(0.7998)
0.0486**
(0.0221)
1.29 × 10−07
(1.37 × 10−07)
−0.3366*
(0.1223)
δ t 0.0186
(0.0108)
−0.0105
(0.0125)
0.0976*
(0.0277)
0.0602
(0.0418)
0.1789*
(0.0272)
−0.0371**
(0.0160)
−0.0111
(0.0128)
δ 92 0.0955*
(0.0340)
0.0432
(0.0609)
−0.0758
(0.1674)
0.1005
(0.5899)
0.2264**
(0.0943)
0.4184**
(0.1883)
0.4854
(0.2839)
Constant 0.1396
(0.1133)
1.7364*
(0.3262)
0.9621*
(0.2639)
−6.6931
(4.1312)
−1.9864*
(0.3176)
−0.5043
(0.2720)
0.6073*
(0.2297)
σ 2 u 4.5104*
(0.9421)
2.8196*
(0.1143)
1.1059*
(0.1778)
0.4782
(0.6265)
2.8830*
(0.2429)
2.2581*
(0.3601)
1.0327*
(0.2834)
σ 2 v 1.6786*
(0.0559)
5.4708*
(1.2117)
2.2791*
(0.4303)
2.3666*
(0.0672)
2.9171*
(0.1453)
1.4705*
(0.0471)
3.8270*
(0.3267)
Log-likelihood −2592.36 −12.69 −403.1 −380.88 −71.39 −1155.52 −87.13
Number of observations 4277 473 434 1023 377 1613 357
Number of cross-sections 240 25 21 59 19 90 20
Number of time periods 26 26 26 26 26 26 26
Average number of time periods 18 19 21 17 19 18 17
  1. Standard errors in brackets
  2. Significance: * = 0.1 % level, ** = 1 % level, and *** = 5 % level