Size and efficiency - case of Irish plastics industry

Abstract

International evidence has suggested that plant or firm size does not significantly affect efficiency in the plastics processing industry; this has led to the generalisation that small firms can be economically viable in the processing of plastics. The aim of this paper is to examine such hypotheses within the context of the Irish Plastics Industry, i.e., to consider the effect of firm size on productive efficiency. The conclusion of our investigation is that output composition and factor mix are more important in explaining efficiency than the scale of output.