Drivers of regional efficiency differentials in Italy: Technical inefficiency or allocative distortions?

Fabrizio Erbetta, Carmelo Petraglia

Risultato della ricerca: Contributo su rivistaArticolo in rivistapeer review

Abstract

This paper estimates regional economic efficiency differentials at the firm level for the Italian manufacturing sector in the period 1998-2003. We implement an input distance-function approach providing measures of both technical inefficiency and allocative distortions in the choice of input mixes. Our results confirm the substantial technical efficiency gap suffered by firms located in Southern regions, thus providing empirical support for the "structural and technological gap" interpretation of Italian dualism. On the other hand, the allocative distortions in the use of inputs show less-remarkable regional differences. In terms of policy, our results suggest the need for a reallocation of public resources for development policies from business incentives to public investment.

Lingua originaleInglese
pagine (da-a)351-375
Numero di pagine25
RivistaGrowth and Change
Volume42
Numero di pubblicazione3
DOI
Stato di pubblicazionePubblicato - set 2011

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