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Decomposing multifactor productivity in Italy from 1998 to 2004: evidence from large firms and SMEs using DEA

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  • Carlo Milana
  • Leopoldo Nascia
  • Alessandro Zeli

Abstract

This paper presents a firm-level analysis of multifactor productivity (MFP) in Italy between 1998 and 2004. Using data envelopment analysis (DEA) technique, MFP change are measured for 31 industries and decomposed into efficiency change and technical change (which in turn is interpreted as the combined effect of technical progress and scale economies). The results highlight the stagnation in many Italian production activities and even a decrease in MFP in some industries. A non-parametric statistical test on the results obtained from DEA reveals that the analysed larger firms have been more likely to perform better in efficiency than the smaller ones. This outcome seems to complement the Schumpeterian view of a relatively high attitude of larger firms towards technological innovation and productivity growth. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Carlo Milana & Leopoldo Nascia & Alessandro Zeli, 2013. "Decomposing multifactor productivity in Italy from 1998 to 2004: evidence from large firms and SMEs using DEA," Journal of Productivity Analysis, Springer, vol. 40(1), pages 99-109, August.
    • Handle: RePEc:kap:jproda:v:40:y:2013:i:1:p:99-109
    DOI: 10.1007/s11123-013-0337-z
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    Cited by:

    1. Agostino, M. & Nifo, A. & Ruberto, S. & Scalera, D. & Trivieri, F., 2022. "Productivity changes in the automotive industry of three European countries. An application of the Malmquist index decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 216-226.
    2. Agostino, Mariarosaria & Nifo, Annamaria & Trivieri, Francesco & Vecchione, Gaetano, 2016. "Total factor productivity heterogeneity: channelling the impact of institutions," MPRA Paper 72759, University Library of Munich, Germany.
    3. Francesco Bogliacino & Matteo Lucchese & Leopoldo Nascia & Mario Pianta, 2015. "The virtuous circle of innovation in Italian firms," Working Papers 1504, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.
    4. Mariarosaria Agostino & Emanuele Brancati & Anna Giunta & Domenico Scalera & Francesco Trivieri, 2020. "Firms' efficiency and global value chains: An empirical investigation on Italian industry," The World Economy, Wiley Blackwell, vol. 43(4), pages 1000-1033, April.
    5. Joseph Junior Aduba & Behrooz Asgari, 2020. "Productivity and technological progress of the Japanese manufacturing industries, 2000–2014: estimation with data envelopment analysis and log-linear learning model," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 343-387, June.
    6. OA Carboni & P. Russu, 2014. "Measuring Environmental and Economic Efficiency in Italy: an Application of the Malmquist-DEA and Grey Forecasting Model," Working Paper CRENoS 201401, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    7. Mariarosaria Agostino & Sabrina Ruberto & Francesco Trivieri, 2018. "Lasting lending relationships and technical efficiency. Evidence on European SMEs," Journal of Productivity Analysis, Springer, vol. 50(1), pages 25-40, October.
    8. Francesca Marino, 2016. "The Italian productivity slowdown in a Real Business Cycle perspective," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 63(2), pages 171-193, June.

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    More about this item

    Keywords

    Multifactor productivity; Technical change; Technical efficiency; Innovation; DEA; D2; L2; O4;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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