Competitivita' e divari di efficienza nell'industria italiana

Luigi Benfratello, F. Erbetta and G. Fraquelli
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G. Fraquelli: Universita' Piemento Occidentale, Ceris - CNR

Rivista Internazionale di Scienze Sociali, 2005, vol. 113, issue 1, 3-22

Abstract: This paper assesses the role of competition in explaining efficiency in the Italian manufacturing industries. Technical efficiency differentials are measured by applying the Data Envelopment Analysis (DEA) method on a panel of firms from 43 industries at 3- digit level, over the 1983-1991 period. The average level of efficiency of each industry is then related through econometric techniques to some factors reflecting the degree of competition. Economic literature states that a tougher competitive environment is efficiency enhancing and we find a negative link between efficiency and concentration. Moreover, efficiency declines more slowly when the level of concentration is higher, whereby suggesting a non-linear relationship. These results have policy implications. The processes of liberalisation and privatisation in Italy should take into account the benefical effects of a more competitive environment.

Keywords: Competition; Technical efficiency. (search for similar items in EconPapers)
JEL-codes: D24 L1 (search for similar items in EconPapers)
Date: 2005
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