Efficiency in the Manufacturing Industry of Selected Provinces in Turkey - a Stochastic Frontier Analysis

Posted: 7 Feb 2005

See all articles by A. Ozlem Onder

A. Ozlem Onder

Ege University - Department of Economics

Ertugrul Deliktas

Ege University - Department of Economics

Aykut Lenger

Middle East Technical University

Abstract

This paper measures technical efficiency and technical and total factor productivity changes by estimating a translog stochastic frontier production function for the Turkish manufacturing industry in selected provinces. This method incorporates technical change and has time-varying technical efficiency effects. The stochastic frontier function was estimated by using panel data based on eighteen selected provinces of Turkey for the 1990-98 period The performance of the public and private sector manufacturing industries in these provinces was also measured separately. The probable reasons of different performances of provinces in terms of efficiency are discussed. In this context, the effects of average firm size, the share of regional production, and the time period were considered.

Keywords: stochastic production frontiers, technical change, technical efficiency, total factor productivity

Suggested Citation

Onder, A. Ozlem and Deliktas, Ertugrul and Lenger, Aykut, Efficiency in the Manufacturing Industry of Selected Provinces in Turkey - a Stochastic Frontier Analysis. Available at SSRN: https://ssrn.com/abstract=663061

A. Ozlem Onder (Contact Author)

Ege University - Department of Economics ( email )

Bornova, Izmir 35040
Turkey
+90 232 343 40 00/5287 (Phone)
+90 232 3734194 (Fax)

Ertugrul Deliktas

Ege University - Department of Economics ( email )

Bornova, Izmir 35040
Turkey

Aykut Lenger

Middle East Technical University ( email )

Inonu Bulvari
Ankara 06531
Turkey

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