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Technical efficiency of Spanish manufacturing firms: a panel data approach

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  • Ana Martin-Marcos
  • Cristina Suarez-Galvez

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.

Suggested Citation

  • Ana Martin-Marcos & Cristina Suarez-Galvez, 2000. "Technical efficiency of Spanish manufacturing firms: a panel data approach," Applied Economics, Taylor & Francis Journals, vol. 32(10), pages 1249-1258.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:10:p:1249-1258
    DOI: 10.1080/000368400404407
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    Cited by:

    1. Honkatukia, Juha, 2006. "Is there potential for government participation in flexibility mechanisms? - Evaluating the Finnish case," Conference papers 331472, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Margono, Heru & Sharma, Subhash C., 2006. "Efficiency and productivity analyses of Indonesian manufacturing industries," Journal of Asian Economics, Elsevier, vol. 17(6), pages 979-995, December.
    3. Yélou, Clément & Larue, Bruno & Tran, Kien C., 2010. "Threshold effects in panel data stochastic frontier models of dairy production in Canada," Economic Modelling, Elsevier, vol. 27(3), pages 641-647, May.
    4. Mabel Pisa & Rosario Sánchez, 2016. "Work Incentive and Productivity in Spain," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(1), pages 99-111.
    5. M. Diaz & Rosario Sanchez, 2008. "Firm size and productivity in Spain: a stochastic frontier analysis," Small Business Economics, Springer, vol. 30(3), pages 315-323, March.
    6. Quirós Romero, Cipriano & Rodríguez Rodríguez, Diego, 2010. "E-commerce and efficiency at the firm level," International Journal of Production Economics, Elsevier, vol. 126(2), pages 299-305, August.
    7. Rosario SÁNCHEZ-PÉREZ & M. Ángeles DÍAZ-MAYANS, 2013. "Are Large Innovative Firms More Efficient?," Theoretical and Practical Research in the Economic Fields, ASERS Publishing, vol. 4(1), pages 89-96.
    8. Alexander Schiersch, 2013. "Firm size and efficiency in the German mechanical engineering industry," Small Business Economics, Springer, vol. 40(2), pages 335-350, February.
    9. Ivan Stoykov & Paraskeva Dimitrova, 2003. "Modelling Firm Activity," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-24.
    10. Anthony N. Rezitis & Maria A. Kalantzi, 2016. "Investigating Technical Efficiency and Its Determinants by Data Envelopment Analysis: An Application in the Greek Food and Beverages Manufacturing Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 254-271, April.

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