Short and Long Run Efficiency of Turkish Food Industry: A Stochastic Frontier Analysis

The objective of this study is to estimate the technical inefficiency of Turkish food industry and to examine whether technical inefficiency is persistent. In accordance with this purpose, “The technical inefficiency of Turkish food industry is persistent” and “Efficiency levels of firms does not converge in the long term” hypotheses are established and tested. Using Structural Business Survey conducted by TURKSTAT, stochastic production frontier estimated for the 2003-2011 period. According to study results; it has been identified that the technical inefficiency of Turkish food industry is persistent and there is no convergence in efficiency in the long run.