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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