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- Eficiency And Productivity Specialization: The Spanish Regions

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Author Info
Joaquín Maudos Villarroya (Instituto Valenciano de Investigaciones Económicas)
José Manuel Pastor Monsálvez (Universitat de València)
Lorenzo Serrano Martínez (Universitat de València)

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Abstract

This paper shows the importance of the composition of production -productive specialization- and sector inefficiencies when evaluating efficiency in aggregate production. For this purpose, a new approach is proposed for obtaining efficiency scores which enables two components to be differentiated: one associated with the degree of efficiency within each sector -intra-sector efficiency- and another associated with the composition of production - composition efficiency. The application of this approach and its break-down for the Spanish regions in the period 1964-1993, using a non-parametric approach -DEA- shows greater gainsin composition efficiency as a consequence of the structural changes in productive specialization. Also, the break-down of labor productivity convergence shows the increasing importance over time of composition efficiency as a source of convergence, being even more important than capital accumulation and technical progress from the mid-1970s. Nevertheless, intra-sector efficiency gains was a significant source of convergence for the whole period analysed. Este trabajo muestra la importancia que la composición de la producción -especialización productiva- y las ineficiencias sectoriales tienen a la hora de valorar la eficiencia en la producción agregada. Para ello, se propone una nueva forma de medir la eficiencia que permite diferenciar dos componentes: uno asociado al grado de eficiencia dentro de cada sector -eficiencia intrasectorial- y otro asociado a la composición de la producción - eficiencia de composición-. La aplicación de este indicador y su decomposición para las regiones españolas en el periodo 1964-93 utilizando un enfoque no paramétrico -DEA-muestra las mayores ganancias de eficiencia de composición como consecuencia de los cambios estructurales en la especialización productiva. Asimismo, la descomposición de la convergencia en productividad del trabajo muestra una importancia creciente a lo largo del tiempo de la eficiencia de composición como fuente de convergencia siendo incluso más importante que la acumulación de capital y el progreso técnico desde mediados de la década de los setenta. No obstante, para la totalidad del periodo analizado la eficiencia intrasectorial ha sido una fuente significativa de convergencia.

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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 1998-26.

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Length: 25 pages
Date of creation: Oct 1998
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:1998-26

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Related research
Keywords: Eficiencia especialización productiva convergencia Efficiency productive specialisation convergence

References listed on IDEAS
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  1. Taskin, Fatma & Zaim, Osman, 1997. "Catching-up and innovation in high- and low-income countries," Economics Letters, Elsevier, vol. 54(1), pages 93-100, January. [Downloadable!] (restricted)
  2. Perelman, Sergio, 1995. "R&D, Technological Progress and Efficiency Change in Industrial Activities," Review of Income and Wealth, Blackwell Publishing, vol. 41(3), pages 349-66, September.
  3. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March. [Downloadable!] (restricted)
  4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
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