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Decomposition of Cost Competitiveness in U.S. Manufacturing: Some State-by-State Comparisons

Author

Listed:
  • Subhash C. Ray

    (University of Connecticut)

  • Kankana Mukherjee

    (University of Connecticut)

Abstract

In this paper we propose a measure of the competitiveness index of one firm relative to another in the same industry. We also provide a decomposition procedure that relates the measured index of competitiveness to separate components capturing differences in cost efficiency, input prices, and scale economies. In the empirical application, we use data from the 1992 Census of Manufactures to rank the performance of the individual states in U.S. manufacturing.

Suggested Citation

  • Subhash C. Ray & Kankana Mukherjee, 2000. "Decomposition of Cost Competitiveness in U.S. Manufacturing: Some State-by-State Comparisons," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 35(2), pages 133-153, July.
  • Handle: RePEc:dse:indecr:v:35:y:2000:i:2:p:133-153
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    Cited by:

    1. Ke Wang & Yujiao Xian & Chia-Yen Lee & Yi-Ming Wei & Zhimin Huang, 2017. "On selecting directions for directional distance functions in a non-parametric framework: A review," CEEP-BIT Working Papers 99, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    2. Ray, Subhash C. & Chen, Lei & Mukherjee, Kankana, 2008. "Input price variation across locations and a generalized measure of cost efficiency," International Journal of Production Economics, Elsevier, vol. 116(2), pages 208-218, December.

    More about this item

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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