Scale effect in Turkish manufacturing industry: Stochostic Meta-Frontier analysis

The main purpose of this study with respect to the indicators of efficiency of firms operating in Turkey manufacturing industry is to analyze the impact of scale differences on firm performance. For this aim, the main hypotheses of the study are: ?according to group analysis, large scale firms are more efficient than small scale firms? and ?technology gap between firms leads to differences in industrial efficiency?.The database that is used in this study is provided from the survey results (2006) belongs to İstanbul OSB; from the balance sheets and income statements of firms registered in IMKB, which operate in Turkey manufacturing industry for the period 2005-2010. Furthermore the database fordescriptive analyzes was obtained from TUIK and TKB. As the analysing method, the stochastic frontier used as well as the meta-frontier analyzes.Briefly, when the analytical results of study are evaluated as a whole, except of GITAS and PKPAS, the production inefficiency which occures in other sub-sectors due to conditions of increasing return to scale, is significantly caused by the operation carried out below the optimal production scale.Keywords: Technical Efficiency, Technology Gap, Stochastic Frontier Analysis, Meta-Frontier, Turkey Manufacturing Industry.