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Productivity, Efficiency And Technological Change In European Union Regional Manufacturing: A Data Envelopment Analysis Approach

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  • ALVARO ANGERIZ
  • JOHN McCOMBIE
  • MARK ROBERTS

Abstract

Using data envelopment analysis, we calculate indices of total factor productivity (TFP), efficiency and technological change for the manufacturing sectors of 68 European NUTS1 regions over the period 1986–2002. We subsequently examine these indices using exploratory spatial data analysis (ESDA) techniques, before considering tendencies towards convergence in both TFP and technical efficiency levels. While the ESDA reveals significant spatial autocorrelation, the convergence analysis uncovers no tendency for regions with initially lower TFP to catch up with regions with initially higher TFP. However, convergence is found in levels of technical efficiency, although towards a relatively lower average level.

Suggested Citation

  • ALVARO ANGERIZ & JOHN McCOMBIE & MARK ROBERTS, 2006. "Productivity, Efficiency And Technological Change In European Union Regional Manufacturing: A Data Envelopment Analysis Approach," Manchester School, University of Manchester, vol. 74(4), pages 500-525, July.
    • Handle: RePEc:bla:manchs:v:74:y:2006:i:4:p:500-525
    DOI: 10.1111/j.1467-9957.2006.00506.x
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    References listed on IDEAS

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    1. Sergio J. Rey & Boris Dev, 2004. "Sigma-convergence in the presence of spatial effects," Urban/Regional 0404008, University Library of Munich, Germany, revised 22 Apr 2004.
    2. John S. L. McCombie & Mark Roberts, 2007. "Returns To Scale And Regional Growth: The Static-Dynamic Verdoorn Law Paradox Revisited," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 179-208, May.
    3. Fabio Canova & Albert Marcet, 1995. "The poor stay poor: Non-convergence across countries and regions," Economics Working Papers 137, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
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    Cited by:

    1. Daniel Dujava, 2012. "Príčiny zaostávania nových členských krajín EÚ: empirická analýza na základe Montgomeryho dekompozície [Causes of Lagging Behind of New Member States of EU: Empirical Analysis by Montgomery Decomposition]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(2), pages 222-244.
    2. Cristina Polo & Julián Ramajo & Alejandro Ricci‐Risquete, 2021. "A stochastic semi‐non‐parametric analysis of regional efficiency in the European Union," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 7-24, February.
    3. José Contreras & Andrés Santeliz & Oscar Carvallo, 2012. "Patterns of technical efficiency in the Venezuelan manufacturing sector (2007)," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 37(34), pages 121-137, july-dece.
    4. Sara Barcenilla-Visús & José-María Gómez-Sancho & Carmen López-Pueyo & María-Jesús Mancebón & Jaime Sanaú, 2013. "Technical Change, Efficiency Change and Institutions: Empirical Evidence for a Sample of OECD Countries," The Economic Record, The Economic Society of Australia, vol. 89(285), pages 207-227, June.
    5. Ceccobelli, M. & Gitto, S. & Mancuso, P., 2012. "ICT capital and labour productivity growth: A non-parametric analysis of 14 OECD countries," Telecommunications Policy, Elsevier, vol. 36(4), pages 282-292.
    6. Roberto Ezcurra & Belen Iraizoz & Pedro Pascual, 2009. "Total Factor Productivity, Efficiency, and Technological Change in the European Regions: A Nonparametric Approach," Environment and Planning A, , vol. 41(5), pages 1152-1170, May.
    7. Tariq Mahmood & Ejaz Ghani & Musleh-Ud Din, 2006. "Efficiency of Large-scale Manufacturing in Pakistan: A Production Frontier Approach," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 689-700.
    8. Ertugrul Deliktas, 2013. "The Analysis of Technical Efficiency and Productivity Growth In The Former Soviet Union Countries For Two Periods," Working Papers 1304, Ege University, Department of Economics.
    9. Mari Maté-Sánchez-Val & Antonia Madrid-Guijarro, 2011. "A spatial efficiency index proposal: an empirical application to SMEs productivity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(2), pages 353-371, October.
    10. Mitsuhiko Kataoka, 2022. "Perspiration versus inspiration: sources of national and provincial output growth in Indonesia [1990–2015] using province-level non-parametric frontier analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 113-139, February.
    11. Kounetas, Kostas & Napolitano, Oreste, 2018. "Modeling the incidence of international trade on Italian regional productive efficiency using a meta-frontier DEA approach," Economic Modelling, Elsevier, vol. 71(C), pages 45-58.
    12. Ertugrul Deliktaþ, 2008. "The Comparison of Technical Efficiency and Productivity Growth in Transition Countries and the Soviet Union Countries," Papers of the Annual IUE-SUNY Cortland Conference in Economics, in: Oguz Esen & Ayla Ogus (ed.), Proceedings of the Conference on Emerging Economic Issues in a Globalizing World, pages 91-107, Izmir University of Economics.
    13. Sumon Kumar Bhaumik, 2022. "Technical Efficiency and Its Determinants in the Manufacturing Sector: What We Know and What We Should Know," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 36, pages 1411-1432, Springer.
    14. Mitsuhiko Kataoka, 2020. "Total factor productivity change in Indonesia’s provincial economies for 1990–2015: Malmquist productivity index approach," Letters in Spatial and Resource Sciences, Springer, vol. 13(3), pages 233-243, December.

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