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Competitivita' e divari di efficienza nell'industria italiana

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Author Info

  • L. BENFRATELLO

    (Universita' di Torino, Ceris - CNR)

  • F. ERBETTA
  • G. FRAQUELLI

    (Universita' Piemento Occidentale, Ceris - CNR)

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.

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File URL: http://riss.vitaepensiero.it/scheda-articolo_digital/l-benfratello-f-erbetta-g-fraquelli/competitivita-e-divari-di-efficienza-nellindustria-italiana-000518_2005_0001_0003-150806.html
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Bibliographic Info

Article provided by Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore in its journal Rivista Internazionale di Scienze Sociali.

Volume (Year): 113 (2005)
Issue (Month): 1 ()
Pages: 3-22

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Handle: RePEc:vep:journl:y:2005:v:113:i:1:p:3-22

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Keywords: Competition; Technical efficiency.;

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