IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v25y1995i3p317-330.html
   My bibliography  Save this article

Determinants Of Manufacturing Efficiency In Canadian Cities: A Stochastic Frontier Approach

Author

Listed:
  • Kim McCoy

    (Central Missouri State University)

  • Ronald L. Moomaw

    (Oklahoma State University at Stillwater)

Abstract

This study uses panel data to estimate stochastic production frontiers for Canadian cities. Efficiency indices are derived from the production frontiers. Regression analysis of the determinants of a city's inefficiency shows that population size and density both increase efficiency. These results are consistent with the existence of static agglomeration economies or of a systematically increasing failure of smaller cities to use best-practice technology. In either case, the results imply that urbanization may have an important positive influence on national economic growth.

Suggested Citation

  • Kim McCoy & Ronald L. Moomaw, 1995. "Determinants Of Manufacturing Efficiency In Canadian Cities: A Stochastic Frontier Approach," The Review of Regional Studies, Southern Regional Science Association, vol. 25(3), pages 317-330, Winter.
    • Handle: RePEc:rre:publsh:v:25:y:1995:i:3:p:317-330
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/25.3.6/pdf
    File Function: To View On Journal Page
    Download Restriction: no
    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/download/25.3.6/457
    File Function: To Download Article
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
    2. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    4. Schmidt, Peter, 1976. "On the Statistical Estimation of Parametric Frontier Production Functions," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 238-239, May.
    5. Aberg, Yngve, 1973. "I. regional productivity differences in Swedish manufacturing," Regional and Urban Economics, Elsevier, vol. 3(2), pages 131-155, May.
    6. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    7. Ronald L. Moomaw, 1981. "Productivity and City Size: A Critique of the Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 96(4), pages 675-688.
    8. Alan W. Evans, 1972. "The Pure Theory of City Size in an Industrial Economy," Urban Studies, Urban Studies Journal Limited, vol. 9(1), pages 49-77, February.
    9. Ronald L. Moomaw, 1988. "Agglomeration Economies: Localization or Urbanization?," Urban Studies, Urban Studies Journal Limited, vol. 25(2), pages 150-161, April.
    10. Nakamura, Ryohei, 1985. "Agglomeration economies in urban manufacturing industries: A case of Japanese cities," Journal of Urban Economics, Elsevier, vol. 17(1), pages 108-124, January.
    11. Yezer, Anthony M. J. & Goldfarb, Robert S., 1978. "An indirect test of efficient city sizes," Journal of Urban Economics, Elsevier, vol. 5(1), pages 46-65, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Riefler, Roger F., 2005. "A New Geography for Information Technology Activity?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(2), pages 1-10.
    2. Akihiro Otsuka, 2020. "How do population agglomeration and interregional networks improve energy efficiency?," Asia-Pacific Journal of Regional Science, Springer, vol. 4(1), pages 1-25, February.
    3. Domazlicky, Bruce R. & Weber, William, L., 1998. "Determinants of Total Factor Productivity, Technological Change, and Efficiency Differentials Among States, 1977-86," The Review of Regional Studies, Southern Regional Science Association, vol. 28(2), pages 19-34, Fall.
    4. Baldwin, John R. Beckstead, Desmond Brown, W. Mark Rigby, David, 2007. "Économies urbaines et productivité," Série de documents de recherche sur l'analyse économique (AE) 2007045f, Statistics Canada, Direction des études analytiques.
    5. Baldwin, John R. Beckstead, Desmond Brown, W. Mark Rigby, David, 2007. "Urban Economies and Productivity," Economic Analysis (EA) Research Paper Series 2007045e, Statistics Canada, Analytical Studies Branch.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elsie L. Echeverri-Carroll & Sofia G. Ayala, 2011. "Urban Wages: Does City Size Matter?," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 253-271, February.
    2. William C. Strange, 2009. "Viewpoint: Agglomeration research in the age of disaggregation," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 1-27, February.
    3. Jun Koo & Somik Lall, 2007. "New Economic Geography: Real or Hype?," International Regional Science Review, , vol. 30(1), pages 3-19, January.
    4. Lourens Broersma & Jan Oosterhaven, 2009. "Regional Labor Productivity In The Netherlands: Evidence Of Agglomeration And Congestion Effects," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 483-511, August.
    5. Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc.
    6. Mohamed Ali Labidi, 2021. "Tunisian industrial policy, location and evolution of the industrial space of the interior regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 943-956, June.
    7. Agarwalla, Astha, 2011. "Agglomeration Economies and Productivity Growth in India," IIMA Working Papers WP2011-01-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
    9. Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.
    10. Koh, Hyun-Ju & Riedel, Nadine & Böhm, Tobias, 2013. "Do governments tax agglomeration rents?," Journal of Urban Economics, Elsevier, vol. 75(C), pages 92-106.
    11. Alex Anas, 2004. "Vanishing cities: what does the new economic geography imply about the efficiency of urbanization?," Journal of Economic Geography, Oxford University Press, vol. 4(2), pages 181-199, April.
    12. Miguel Ángel García & Ivan Muñiz, 2005. "El impacto espacial de las economías de aglomeración y su efecto sobre la estructura urbana.El caso de la industria en Barcelona, 1986-1996," Working Papers wpdea0509, Department of Applied Economics at Universitat Autonoma of Barcelona.
    13. Shelby Gerking, 1993. "Measuring Productivity Growth in U.S. Regions: A Survey," International Regional Science Review, , vol. 16(1-2), pages 155-185, April.
    14. Daniel Shefer, 2011. "The Center-periphery Dilemma and the Issue of Equity in Regional Development," ERSA conference papers ersa11p1192, European Regional Science Association.
    15. Díaz Serrano, Lluís, 2015. "What explains productivity differentials across spanish cities?," Working Papers 2072/247805, Universitat Rovira i Virgili, Department of Economics.
    16. Daria Onori, 2015. "Competition and Growth: Reinterpreting their Relationship," Manchester School, University of Manchester, vol. 83(4), pages 398-422, July.
    17. Nguyen, Khac Minh & Giang, Thanh Long, 2005. "Efficiency of Construction Firms in Vietnam," MPRA Paper 968, University Library of Munich, Germany, revised Nov 2006.
    18. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    19. Ryohei Nakamura, 2005. "Agglomeration Economies and Linkage Externalities in Urban Manufacturing Industries - A Case of Japanese Cities," ERSA conference papers ersa05p768, European Regional Science Association.
    20. Gashawbeza Bekele & Randall Jackson, 2006. "Theoretical Perspectives on Industry Clusters," Working Papers Working Paper 2006-05, Regional Research Institute, West Virginia University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:25:y:1995:i:3:p:317-330. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tammy Leonard & Lei Zhang (email available below). General contact details of provider: http://www.srsa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.