Technical efficiency of Spanish manufacturing firms: a panel data approach

Ana Martín‐Marcos · Cristina Suárez

34 citations0/0 files storedApplied Economics

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Efficiency Analysis Using DEA Economic Growth and Productivity Firm Innovation and Growth

Abstract

This paper estimates the levels of technical efficiency reached by Spanish manufacturing firms, through an econometric estimation of frontier production functions for fifteen sectors of activity, and also, obtains other relevant technological measurements of these productive processes such as the scale and the technical progress parameters. The methodology used is the panel data methods (Schmidt and Sickles, 1984). The statistical source is provided by the Survey on Business Strategies (Encuesta Sobre Estrategias Empresariales), a panel of data covering 855 Spanish manufacturing firms observed over the period 1990-1994. Our econometric results confirm the great heterogeneity in the firms' efficiency, the predominance of constant returns to scale and the great rate of technological progress.

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References

1957The Measurement of Productive Efficiency 1977Formulation and estimation of stochastic frontier production function models 1977Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error 1992Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India 1984Production Frontiers and Panel Data 1990Production frontiers with cross-sectional and time-series variation in efficiency levels 1980A survey of frontier production functions and of their relationship to efficiency measurement 1980Maximum likelihood estimation of econometric frontier functions

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