This paper assesses the role of competition in explaining the efficiency in the Italian manufacturing. Technical efficiency differentials are measured by applying Data Evelopment Analysis (DEA) method on a panel of firms from 43 industries at 3- digit level, over the period 1983-1991. The average level of efficiency of every industry is then related to some factors of competition by econometric approach. The analysis shows that a tougher competitive environment is efficiency enhancing . Consistent with previous empirical evidence we find a negative link between efficiency and concentration. Moreover efficiency declines more slowly when the level of concentration is highest, suggesting a non-linear relationship. The results have policy implications. The undergoing process of liberalisation and privatisation in Italy should take into account the beneficial effects of a more competitive environment.
Competitività e divari di efficienza nell'industria italiana
L Benfratello;
2005
Abstract
This paper assesses the role of competition in explaining the efficiency in the Italian manufacturing. Technical efficiency differentials are measured by applying Data Evelopment Analysis (DEA) method on a panel of firms from 43 industries at 3- digit level, over the period 1983-1991. The average level of efficiency of every industry is then related to some factors of competition by econometric approach. The analysis shows that a tougher competitive environment is efficiency enhancing . Consistent with previous empirical evidence we find a negative link between efficiency and concentration. Moreover efficiency declines more slowly when the level of concentration is highest, suggesting a non-linear relationship. The results have policy implications. The undergoing process of liberalisation and privatisation in Italy should take into account the beneficial effects of a more competitive environment.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
