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A Comparison of the Efficiency in Manufacturing in the Centre and Periphery of Europe

Author

Listed:
  • Aykut Lenger

    (Department of Economics, Ege University)

Abstract

The objective of this paper is to estimate efficiency in manufacturing activities in some selected countries in Europe and to provide an answer to the question of whether or not contiguity to an efficient country contributes to the efficiency levels of manufacturing industries. The Stochastic Frontier Analysis (SFA) is conducted for a limited sample of countries in the periphery and centre of Europe for this purpose. Our estimates show that the more efficient manufacturing industries in our sample are generally in centre countries. Peripheral countries have also increased their efficiency levels some of which were quite low in the beginning of the period. The spatial correlation analysis provided a weak evidence for the spatial dependence of efficiencies, thus a weak base for the argument such that countries were affected by the more efficient manufacturing activity around them. A wider sample of countries may provide stronger evidence, though.

Suggested Citation

  • Aykut Lenger, 2007. "A Comparison of the Efficiency in Manufacturing in the Centre and Periphery of Europe," Working Papers 0707, Ege University, Department of Economics.
    • Handle: RePEc:ege:wpaper:0707
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    File URL: http://iibf.ege.edu.tr/economics/papers/wp07-07.pdf
    File Function: First version, 2007
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    More about this item

    Keywords

    Efficiency; manufacturing industry; spatial spillovers;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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