Sources of regional inefficiency An integrated shift-share, data envelopment analysis and input-output approach

Abstract.

This paper develops and tests an integrated set of models to investigate sources of (in)efficiencies in regional industry sectors. First, following the Haynes and Dinc (1997) extension of the shift-share model, leading regional industrial sectors are identified for analysis based on their scale, productivity and sources of productivity change. Second, by employing Data Envelopment Analysis (DEA), the efficiency of these lead sectors is investigated and the future competitiveness of these sectors is evaluated. Finally, by incorporating input-output analysis into the model the impact of intersectoral transactions on sectoral efficiency is assessed.