Competitivita' e divari di efficienza nell'industria italiana
This paper assesses the role of competition in explaining efficiency in the Italian manufacturing industries. Technical efficiency differentials are measured by applying the Data Envelopment Analysis (DEA) method on a panel of firms from 43 industries at 3- digit level, over the 1983-1991 period. The average level of efficiency of each industry is then related through econometric techniques to some factors reflecting the degree of competition. Economic literature states that a tougher competitive environment is efficiency enhancing and we find a negative link between efficiency and concentration. Moreover, efficiency declines more slowly when the level of concentration is higher, whereby suggesting a non-linear relationship. These results have policy implications. The processes of liberalisation and privatisation in Italy should take into account the benefical effects of a more competitive environment.
Volume (Year): 113 (2005)
Issue (Month): 1 ()
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