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A Comparison of the Efficiency in Manufacturing in the Centre and Periphery of Europe

Aykut Lenger ()

No 707, Working Papers from Ege University, Department of Economics

Abstract: The objective of this paper is to estimate efficiency in manufacturing activities in some selected countries in Europe and to provide an answer to the question of whether or not contiguity to an efficient country contributes to the efficiency levels of manufacturing industries. The Stochastic Frontier Analysis (SFA) is conducted for a limited sample of countries in the periphery and centre of Europe for this purpose. Our estimates show that the more efficient manufacturing industries in our sample are generally in centre countries. Peripheral countries have also increased their efficiency levels some of which were quite low in the beginning of the period. The spatial correlation analysis provided a weak evidence for the spatial dependence of efficiencies, thus a weak base for the argument such that countries were affected by the more efficient manufacturing activity around them. A wider sample of countries may provide stronger evidence, though.

Keywords: Efficiency; manufacturing industry; spatial spillovers (search for similar items in EconPapers)
JEL-codes: O14 L60 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2007-07
New Economics Papers: this item is included in nep-eff and nep-ure
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