2019•European Journal of Business and ManagementOpen access

Efficiency and Productivity Analysis of the Saudi Manufacturing Industries

Mansour Abdullah Almiman

Abstract

The measurement of total factor productivity for 24 manufacturing industries in Saudi Arabia between 2010 and 2016 is undertaken in the present study based on the Malmquist productivity index (MPI). Efficiency change and technical change are the two constituents of this index. According to the findings, technical efficiency enhancement was the main determinant of the productivity growth by an average of 1.063 percent across the examined industries. By contrast, regarding the rate of technological progress, the majority of the examined industries did not show a good rate of technological progress. Keywords: Malmquist Index, total factor productivity, manufacturing industries, technical efficiency, technical change DOI : 10.7176/EJBM/11-6-14

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Key concepts: Productivity, Malmquist index, Index (typography), Technical change, Technological change, Total factor productivity, Manufacturing, Technical progress