The Impact of Export on the Technical Efficiency of Food and Beverages Industry

The main objective of this study is to investigate the impact of exports on technical efficiency in food and beverages industry in Iran over the period 2000-2009. For this purpose, at first, the technical efficiency in food and beverages industry has been estimated by using stochastic frontier production function, which indicates that average technical efficiency is 0.62. Then, the link between technical efficiency index and food and beverages exports has been estimated by using Dynamic panel data approach. The empirical results show that the exports and R&D expenses have a positive and significant effect on the technical efficiency of food and beverages industry in Iran. So, the human capital has negative and significant effect on the technical efficiency of food and beverages industry.