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Competitivita' e divari di efficienza nell'industria italiana



    (Universita' di Torino, Ceris - CNR)


    (Universita' Piemento Occidentale, Ceris - CNR)


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.

Suggested Citation

  • L. Benfratello & F. Erbetta & G. Fraquelli, 2005. "Competitivita' e divari di efficienza nell'industria italiana," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 113(1), pages 3-22.
  • Handle: RePEc:vep:journl:y:2005:v:113:i:1:p:3-22

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    Competition; Technical efficiency.;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity


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