Competitività e divari di efficienza nell’industria italiana

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Fascicle

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2005 - 1

Title

Competitività e divari di efficienza nell’industria italiana

Authors

L. Benfratello, F. Erbetta, G. Fraquelli

Publisher

Vita e Pensiero

Format

Article |

Pdf

Online from

01-2005

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

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Description

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.