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Technical efficiency and spatial externalities: evidence from spanish small and middle-sized industrial firms

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  • Hernandez-Sancho, Francesc
  • Soler-Marco, Vicent

Abstract

The aim of this paper is to analyze whether firms located inside a hypothetic cluster have a different performance in terms of technical efficiency from firms located outside. To undertake this analysis we present a methodology to overcome the restrictions suffered by this kind of studies, basically the radial efficiency measures. The methodological approach we propose is based on non-radial efficiency measures, also referred as the Russell measure. We present the main results obtained on a sample of small and middle-sized industrial firms located in the Valencian Community (Spain) to show the advantages of this methodology. Furthermore, we assess the links between the spatial location and some management characteristics at firm level.

Suggested Citation

  • Hernandez-Sancho, Francesc & Soler-Marco, Vicent, 2002. "Technical efficiency and spatial externalities: evidence from spanish small and middle-sized industrial firms," ERSA conference papers ersa02p451, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa02p451
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa02/cd-rom/papers/451.pdf
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    References listed on IDEAS

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    3. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    4. Robert Russell, R., 1985. "Measures of technical efficiency," Journal of Economic Theory, Elsevier, vol. 35(1), pages 109-126, February.
    5. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    6. Fare, Rolf & Knox Lovell, C. A., 1978. "Measuring the technical efficiency of production," Journal of Economic Theory, Elsevier, vol. 19(1), pages 150-162, October.
    7. de Lucio, Juan J. & Herce, Jose A. & Goicolea, Ana, 2002. "The effects of externalities on productivity growth in Spanish industry," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 241-258, March.
    8. Vernon Henderson, 1999. "Marshall's Economies," NBER Working Papers 7358, National Bureau of Economic Research, Inc.
    9. Juan J. de Lucio & José A. Herce & Ana Goicolea, "undated". "The effects of externalities on value added and productivity growth in Spanish industry," Working Papers 98-05, FEDEA.
    10. Silvia Fabiani & Guido Pellegrini, 1998. "Un'analisi quantitativa delle imprese nei distretti industriali italiani: redditività, produttività e costo del lavoro," L'industria, Società editrice il Mulino, issue 4, pages 811-832.
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    Cited by:

    1. Andrés J Picazo-Tadeo & Andrés García-Reche, 2007. "What Makes Environmental Performance Differ between Firms? Empirical Evidence from the Spanish Tile Industry," Environment and Planning A, , vol. 39(9), pages 2232-2247, September.

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