Misallocation means that the source is not distributed efficiently. This leads to an important question of how the relationship between misallocation and efficiency is (see [ 1 ]). The purpose of this study is to address the empirical relationship between misallocation and efficiency in the electric and computer industry in Vietnam during the 2005-2015 periods. To do this, we built a model that allowed us to evaluate the impact of misallocation and other factors on efficiency. The slack-based measured efficiency (SBM) model (Tone [ 2 ]), and the super-efficient model (Tone [ 3 ]) are used to estimate the firms’ efficiency. The approach of Hsieh and Klenow [ 4 ] is used to measure misallocation in the study area. Estimated results of the model about the relationship between misallocation and efficiency show that the variable representing the misallocation has a negative sign and statistical significance in all models. In other words, the misallocation negatively affects efficiency. The bigger the misallocation, the lower the efficiency.
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