Decomposing multifactor productivity in Italy from 1998 to 2004: evidence from large firms and SMEs using DEA

Carlo Milana, Leopoldo Nascia () and Alessandro Zeli ()

Journal of Productivity Analysis, 2013, vol. 40, issue 1, 99-109

Abstract: This paper presents a firm-level analysis of multifactor productivity (MFP) in Italy between 1998 and 2004. Using data envelopment analysis (DEA) technique, MFP change are measured for 31 industries and decomposed into efficiency change and technical change (which in turn is interpreted as the combined effect of technical progress and scale economies). The results highlight the stagnation in many Italian production activities and even a decrease in MFP in some industries. A non-parametric statistical test on the results obtained from DEA reveals that the analysed larger firms have been more likely to perform better in efficiency than the smaller ones. This outcome seems to complement the Schumpeterian view of a relatively high attitude of larger firms towards technological innovation and productivity growth. Copyright Springer Science+Business Media New York 2013

Keywords: Multifactor productivity; Technical change; Technical efficiency; Innovation; DEA; D2; L2; O4 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s11123-013-0337-z

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