Efficiency research in Turkish manufacturing industry through 22 main sectors by using stochastic frontier analysis

Manufacturing industry has been the subject of many research. Turkish manufacturing industry gained a new form with the transition from the structuring period beginning with the establishment of the Republic to the ?Foreign Expansion? period starting in the 1980s. In the 1980s the industrialization policies namely ?import substitution? were left and transfered to the ?export-oriented industrialization? period. The manufacturing industry attained a dynamic structure with the beginning of this period.Efficiency and productivity are important concepts of the production. The rate of inputs to outputs, how well are these inputs are used and the performance of the inputs in resource use are calculated by these concepts. Several analysis methods could be used during these calculations. One of these methods is the ?Stochastic Frontier Analysis?.22 main sectors are determined for the productivity and efficiency calculations of Turkish Manufacturing Industry. Cobb- Douglas production function is formed by using rate of capacity utilisation, production index and production workers index variables. This model is analysed by both the cross section and the panal data models in the Frontier 4.1 program.At the result of the research it is found that the sector which increases its efficency most is the ?Other Transport Equipment Manufacturing Industry?, according to both the cross section model and the panal data model.