COMPETITIVITÀ E DIVARI DI EFFICIENZA NELL'INDUSTRIA ITALIANA

Giovanni Fraquelli (), Piercarlo Frigero and Fulvio Sugliano
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Giovanni Fraquelli: Univ. degli Studi del Piemonte Orientale - Dip. di Studi per l'Impresa e il Territorio
Piercarlo Frigero: Università di Torino
Fulvio Sugliano: Ceris - Institute for Economic Research on Firms and Growth, Turin, Italy

CERIS Working Paper from CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY

Abstract: This paper assesses the role of competition in explaining the efficiency in the Italian manufacturing. Technical efficiency differentials have been measured by applying Data Evelopment Analysis (D.E.A.) methods on a panel of 420 firms from 32 industries at 3- digit level, over the period 1983-1992. 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.

JEL-codes: D24 L1 (search for similar items in EconPapers)
Pages: 29 pages KeywordsCompetition, Technical efficiency
Date: 2001-06
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Persistent link: https://EconPapers.repec.org/RePEc:csc:cerisp:200101

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