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Human capital effects on technical inefficiency: a stochastic frontier analysis across industries of the Greek economy

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  • Sophia P. Dimelis
  • Sotiris K. Papaioannou

Abstract

In this paper we examine the impact of human capital on technical inefficiency. A stochastic production frontier is simultaneously estimated with a technical inefficiency model using data from one-digit industries of the Greek economy, for the period 2000-2005. The results indicate a significantly negative impact of human capital on technical inefficiency, which is comparatively lower in magnitude for the sector of public services. The most efficient industries of the Greek economy are those of Education, Financial intermediation and Real estate, renting & business activities. The highest contribution of human capital on technical efficiency is observed in the industries of Health, Education and Real estate, renting & business activities.

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  • Sophia P. Dimelis & Sotiris K. Papaioannou, 2014. "Human capital effects on technical inefficiency: a stochastic frontier analysis across industries of the Greek economy," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(6), pages 797-812, September.
    • Handle: RePEc:taf:irapec:v:28:y:2014:i:6:p:797-812
    DOI: 10.1080/02692171.2014.907246
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    Cited by:

    1. Fındık, Derya & Tansel, Aysit, 2013. "Intangible investment and technical efficiency: The case of software-intensive manufacturing firms in Turkey," MPRA Paper 66165, University Library of Munich, Germany, revised 05 Aug 2014.
    2. Nguyen-Anh, Tuan & Hoang-Duc, Chinh & Tiet, Tuyen & Nguyen-Van, Phu & To-The, Nguyen, 2022. "Composite effects of human, natural and social capitals on sustainable food-crop farming in Sub-Saharan Africa," Food Policy, Elsevier, vol. 113(C).
    3. Shamsuzzoha & Makoto Tanaka, 2021. "The role of human capital on the performance of manufacturing firms in Bangladesh," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 21-33, January.
    4. Derya Findik & Aysit Tansel, 2015. "​ Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey," Working Papers 2015/11, Turkish Economic Association.
    5. Salem Gheit, 2022. "A Stochastic Frontier Analysis of the Human Capital Effects on the Manufacturing Industries’ Technical Efficiency in the United States," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 8(3), pages 215-238, July.

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