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Being efficient to stay strong in a weak economy. The case of calabrian manufacturing firms

Francesco Aiello () and Concetta Castiglione ()

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this work is to study the efficiency of firms operating in Calabria, a small and economically-lagging Italian region. The analysis is carried out by estimating a stochastic production frontier for an unbalanced panel of manufacturing firms which are observed over the 1998-2006 period. Results show that the efficiency score is, on average, about 60%. A declining trend is observed over the last three-year period, 2004-2006. Moreover, firm efficiency increases with firm age and when firms export. Inconclusive evidence is found for the role of investments in ICT and R&D. This is not very surprising given that private effort in technological activities is extremely low in Calabria (private R&D intensity was less than 0.075% of regional GDP in 2010).

Keywords: Efficiency; ICT, R&D, Stochastic Frontier, Calabria, Manufacturing firms (search for similar items in EconPapers)
JEL-codes: D22 D24 L63 O33 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff and nep-sbm
Date: 2014-03-12
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https://mpra.ub.uni-muenchen.de/54422/1/MPRA_paper_54366.pdf revised version (application/pdf)

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