Industrial Efficiency in Six Nations continues the pioneering research begun in Caves and Barton's Efficiency in U.S. Manufacturing Industries, extending it to the international sphere and laying the empirical groundwork for a deeper understanding of the sources of inefficiency and their cost in productivity. This extended project is the first to apply the stochastic frontier production function routinely, with results that are both meaningful and sophisticated. Of particular interest are substantive results concerning the effects of exposure to competition, both domestic and foreign, and of organizational factors such as corporate diversification and unionization on productive efficiency. Caves and his colleagues investigate the gaps between average and best-practice efficiency of plants in the manufacturing industries of the United States, Canada, Great Britain, Australia, Japan, and Korea. They show that the resulting measures of industrial...

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