Economic Efficiency of Iran’ Automobile Industry A Panel Data Approach

Abstract

This paper uses a panel data stochastic production frontier model to measure economic efficiency of car production industry in Iran. We estimated both time-variant and time-invariant efficiency random effect models. The result shows that economic efficiency in this industry varies overtime between 96.4 to 97.3 percent. The results also show that industry is increasing return to scale

Keywords

• : economic efficiency
• car production industry
• stochastic production frontier
• panel data
• random effect model