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The study evaluates how cost-efficiency can be better measured in South African manufacturing plants using panel data methods.

February 25, 2026Open Access

Panel Data Estimation for Measuring Cost-Efficiency in South African Manufacturing Plants: A Methodological Evaluation

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Panel data analysis measures cost-efficiency in manufacturing plants, indicating the need for tailored assessments.

The study evaluates how cost-efficiency can be better measured in South African manufacturing plants using panel data methods.
Employs panel data analysis using a mixed-effects model
Accounts for unobserved heterogeneity with robust standard errors
Models cost-efficiency ratios considering firm-specific fixed effects
Firm-specific fixed effects significantly impact cost-efficiency ratios
Panel data methods offer insights into cost-effectiveness in manufacturing
Highlight the need for plant-level characteristics in efficiency assessments

Maseela et al. (2002) studied this question.

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