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Assessment of the «district effect» through non-radial measures of technical efficiency

Author

Listed:
  • Hernández Sancho, Francesc

    () (Universidad de Valencia)

  • Soler i Marco, Vicent

    () (Universidad de Valencia)

Abstract

The aim of this work is to measure the Industrial Marshallian District (IMD) effect through non-radial measures of technical efficiency. Taking as reference the spatial location of each firm (inside or outside of the IMD), a valuable information can be obtained to assess whether there exist competitive advantages (Porters approach) derived from firms agglomerations, as well as their intensity and typology. Recent literature on this topic uses radial measures of technical efficiency. This study tries to overcome some of the limitations involved in this kind of studies, especially as they obtain a unique indicator for the efficiency of all inputs. The methodology used here permits to calculate an efficiency index for each of the inputs. This information is especially important for the analysis of the territorial externalities since contributes to the identification and evaluation of the effects derived from the external economies in every of the aspects of the firms activity. An empirical application is carried out for a sample of Spanish Small and Medium industrial Firms (SMF).

Suggested Citation

  • Hernández Sancho, Francesc & Soler i Marco, Vicent, 2003. "Assessment of the «district effect» through non-radial measures of technical efficiency," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 3, pages 25-39.
  • Handle: RePEc:ris:invreg:0195
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    Keywords

    Marshallian agglomerations; SMF; industrial districts; territorial externalities; non-radial measures of efficiency; DEA; linear programming;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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