An Empirical Analysis of Public Enterprises' Performance in Tanzania's Manufacturing Sector and Some Suggestions for Improvement

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Periodical article

Title:	An Empirical Analysis of Public Enterprises' Performance in Tanzania's Manufacturing Sector and Some Suggestions for Improvement
Author:	Rustayisire, L.W.
Year:	1991
Periodical:	Eastern Africa Economic Review
Volume:	7
Issue:	1
Pages:	13-30
Language:	English
Geographic term:	Tanzania
Subjects:	industry public enterprises Development and Technology Economics and Trade
Abstract:	Concern over the phenomenon of inadequate performance on the part of public enterprises in Tanzania has been raised in a number of studies. In this paper, the Stochastic Frontier Production and Cost Functions methodology is used to analyse the performance of the manufacturing public enterprises sector in the country. The results indicate the existence of a high degree of technical and allocative inefficiencies which have led to substantial decline in the sector's output as well as to excess production cost. Furthermore, the results indicate the extent to which exogenous shocks have had a negative impact on the sector's performance. However, since such shocks are beyond the control of the sector, the relevance of the sector's internal adjustment to the exogenous shocks is rather emphasized. Some possibilities through which the needed internal adjustment can be effected are also pointed out. The sample period covered ranges from 1968 to 1988. Bibliogr., sum.