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This study evaluates the efficiency of manufacturing plants in Rwanda and estimates changes over time.

March 14, 2026Open Access

Methodological Evaluation and Panel-Data Estimation of Manufacturing Systems Efficiency in Rwanda, 2000–2026

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Panel data analysis estimates efficiency gains in Rwandan manufacturing, suggesting a need for focused industrial policy.

This study evaluates the efficiency of manufacturing plants in Rwanda and estimates changes over time.
Applied stochastic frontier analysis (SFA) to unbalanced panel data of manufacturing plants.
Estimated the core model specifying technical inefficiency over time.
Used maximum likelihood estimation with robust standard errors clustered at the plant level.
Revealed a positive trend in mean technical efficiency, with an annual average gain of 2.3%.
Efficiency improvements linked to increased capital investment and integrated production management systems.
Plant age presented a statistically insignificant relationship with efficiency.

Habimana et al. (2003) studied this question.

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