TECHNICAL EFFICIENCY AND PRODUCTIVITY GROWTH OF LISTED FIRMS IN EMERGING MARKETS: EVIDENCE FROM GHANA USING DEA-MALMQUIST AND DYNAMIC PANEL GMM
DOI:
https://doi.org/10.58885/ijbe.v11i1.36.roaKeywords:
GST, Indirect Tax Reform, Tax Compliance, MSMEs, Digital Infrastructure, Fiscal Policy, IndiaAbstract
This study addresses existing research gaps in the literature on technical efficiency and productivity growth among firms listed on the Ghana Stock Exchange by examining the determinants of efficiency dynamics and technological progress within Ghanaian listed enterprises. Improving firm efficiency and productivity remains central to sustainable corporate performance, competitiveness, and economic growth, particularly in emerging markets where institutional and macroeconomic constraints significantly shape business outcomes.
The study primarily evaluates the level of technical efficiency and productivity change of listed firms in Ghana and further investigates the firm-specific and macroeconomic factors driving productivity growth, efficiency improvement, and technological advancement. Drawing on the efficiency and productivity literature, the study identifies key operational, financial, and environmental variables that influence firm performance within the Ghanaian corporate sector.
Using panel data from the audited financial statements of 30 out of 37 listed firms on the Ghana Stock Exchange, selected based on data availability, the study applies Data Envelopment Analysis (DEA) frontier techniques to estimate technical efficiency scores and Malmquist productivity indices for measuring productivity change and technological progress. To examine the determinants of productivity, efficiency, and technological change, the study employs a dynamic panel System Generalized Method of Moments (System GMM) estimator to address potential endogeneity and persistence effects.
The empirical findings reveal that most listed firms operate below the efficient production frontier, indicating substantial room for improvement in technical efficiency and productivity performance. The results further show that firm-specific characteristics and macroeconomic conditions exert heterogeneous effects on productivity growth, efficiency change, and technological progress. In particular, managerial capability, institutional innovation, capital utilization, and macroeconomic stability emerge as critical drivers of firm performance.
The study recommends that management should adopt productivity-enhancing strategies through workforce efficiency improvements, technological innovation, and stronger institutional capacity building to improve operational performance. Additionally, firms should strengthen internal research and strategic planning capabilities to better respond to macroeconomic fluctuations and industry-specific shocks. The findings provide important implications for corporate managers, investors, regulators, and policymakers seeking to enhance firm competitiveness and long-term productivity growth in Ghana.
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