Competitività e divari di efficienza nell'industria italiana

This paper assesses the role of competition in explaining the efficiency in the Italian manufacturing. Technical efficiency differentials are measured by applying Data Evelopment Analysis (DEA) method on a panel of firms from 43 industries at 3- digit level, over the period 1983-1991. The average level of efficiency of every industry is then related to some factors of competition by econometric approach. The analysis shows that a tougher competitive environment is efficiency enhancing . Consistent with previous empirical evidence we find a negative link between efficiency and concentration. Moreover efficiency declines more slowly when the level of concentration is highest, suggesting a non-linear relationship. The results have policy implications. The undergoing process of liberalisation and privatisation in Italy should take into account the beneficial effects of a more competitive environment.