Purpose This study aims to analyse the efficiency effects of institutional distance on Chinese outward foreign direct investment (FDI) in Africa. Design/methodology/approach The utilised true fixed-effect stochastic frontier analysis (SFA) model. Data from 2003 2016 (14 years) were acquired 42 targeted African countries, which are included analysis. Findings results reveal that FDI flow can be ...

Stochastic frontier models are typically estimated by maximum likelihood (MLE) orcorrected ordinary least squares. The consistency of either estimator depends on exogeneity of the explanatory variables (inputs, in the production frontier setting). We will investigate the case that one or more of the inputs is endogenous, in the simultaneous equation sense of endogeneity. That is, we worry that ...

We propose a Laplace stochastic frontier model as an alternative to the traditional model with normal errors. An interesting feature of the Laplace model is that the distribution of inefficiency conditional on the composed error is constant for positive values of the composed error, but varies for negative values. Therefore, it may be ideally suited for analyzing industries with many forms on o...