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

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Author Info

  • Aykut Lenger

    ()
    (Department of Economics, Ege University)

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.

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File URL: http://iibf.ege.edu.tr/economics/papers/wp07-07.pdf
File Function: First version, 2007
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Bibliographic Info

Paper provided by Ege University, Department of Economics in its series Working Papers with number 0707.

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Length: 15 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:ege:wpaper:0707

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Web page: http://www.iibf.ege.edu.tr/economics/
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Keywords: Efficiency; manufacturing industry; spatial spillovers;

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