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Why are some Spanish regions so much more efficient than others?

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Author Info
Jaume Puig ()
Jaime Pinilla
Abstract

This article investigates the main sources of heterogeneity in regional efficiency. We estimate a translog stochastic frontier production function in the analysis of Spanish regions in the period 1964-1996, to attempt to measure and explain changes in technical efficiency. Our results confirm that regional inefficiency is significantly and positively correlated with the ratio of public capital to private capital. The proportion of service industries in the private capital, the proportion of public capital devoted to transport infrastructures, the industrial specialization, and spatial spillovers from transport infrastructures in neighbouring regions significantly contributed to improve regional efficiency.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/1067.pdf
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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1067.

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Date of creation: Feb 2008
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Handle: RePEc:upf:upfgen:1067

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Related research
Keywords: Regional efficiency; Regional spillovers; Human capital; Public capital;

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R53 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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This page was last updated on 2009-11-27.

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