Abstract

This study investigates the determinant factors of economic efficiency in Cote d’Ivoire. We estimated a stochastic production frontier by the maximum likelihood method. For a deeper analysis, we considered a cost frontier and compared the scores of efficiency for each industrial sector. The findings of an investigation of about 3,000 firms observed from 2003 - 2006 reveal that the Ivorian economy is not economically efficient as a consequence of the ensuing: socio-political instabilities; outside debt burden; unemployment rate; and weakness in savings on organizational productivity. Therefore, this study recommends a permanent mechanism of supervision for economic efficiency indicators; promotion of a factual and evocative employment policy for the youth; and the enforcement of granting financial aid to enterprises to assist them in having high added value to improve organizational productivity.

Key words: Economic efficiency, technical efficiency, allocative efficiency, productivity, profit.