Why are Some Spanish Regions so Much More Efficient than Others?

28 Pages Posted: 19 Mar 2008

See all articles by Jaume Puig-Junoy

Jaume Puig-Junoy

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Jaime Pinilla

University of Las Palmas de Gran Canaria - Department of Quantitative Methods in Economics

Date Written: February 2008

Abstract

This article investigates the main sources of heterogeneity in regional efficiency. We estimate a translog stochastic frontier production function in the analysis of Spanish regions in the period 1964-1996, to attempt to measure and explain changes in technical efficiency. Our results confirm that regional inefficiency is significantly and positively correlated with the ratio of public capital to private capital. The proportion of service industries in the private capital, the proportion of public capital devoted to transport infrastructures, the industrial specialization, and spatial spillovers from transport infrastructures in neighbouring regions significantly contributed to improve regional efficiency.

Keywords: Regional efficiency, Regional spillovers, Human capital, Public capital

JEL Classification: C23, H54, R11, R53

Suggested Citation

Puig-Junoy, Jaume and Pinilla, Jaime, Why are Some Spanish Regions so Much More Efficient than Others? (February 2008). Available at SSRN: https://ssrn.com/abstract=1107773 or http://dx.doi.org/10.2139/ssrn.1107773

Jaume Puig-Junoy (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain

Jaime Pinilla

University of Las Palmas de Gran Canaria - Department of Quantitative Methods in Economics ( email )

Campus de Tafira
35017 Las Palmas
Spain

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