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Efficiency of Spanish Textile Industry Before the Sector s Liberalization

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  • Vicente Coll, Olga Blasco
  • Xavier Molina
  • Teresa Martínez

Abstract

This paper examines the technical efficiency of the Spanish textile industry for the period 1995-2005, by estimating a stochastic production function. The empirical findings show that in the first half of the period most of the textile groups displayed high levels of efficiency, which can be attributed to a situation dominated by complacency and status preservation. In the second half, perhaps as a consequence of the forthcoming liberalization of the sector (on January 1, 2005), there was an increase in inefficiency. This was considered to be a result of the reaction to the new competitive scenario on the part of the enterprises, which is the force for change and the power that drives the sector.

Suggested Citation

  • Vicente Coll, Olga Blasco & Xavier Molina & Teresa Martínez, 2011. "Efficiency of Spanish Textile Industry Before the Sector s Liberalization," The IUP Journal of Applied Economics, IUP Publications, vol. 0(3), pages 5-24, July.
    • Handle: RePEc:icf:icfjae:v:10:y:2011:i:3:p:5-24
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