This paper uses a stochastic frontier production-function model to measure and compare productivity efficiency in the manufacturing sector of states in the United States over the period [1959][1960][1961][1962][1963][1964][1965][1966][1967][1968][1969][1970][1971][1972]. Based on this model we find considerable variations in productive efficiency across states. A large portion of the variation is found to be related to regional differences in labor-force characteristics, levels of urbanization and industrial structure. We also examine the relationship between productive efficiency and the subsequent growth of manufacturing and find some evidence of a weak relationship between efficiency and the growth of employment.
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