ABSTRACT The main aim of this paper is to compare data envelopment analysis (DEA) and stochastic frontier analysis (SFA) methods by estimating technical efficiency in the manufacturing industry in the selected provinces of Turkey by using panel data for the period 1990-1998. The comparison of the efficiency scores obtained from these two methods show that there is a significant difference in ranking of provinces in respect of the two methods, and average firm size and regional agglomeration have an impact on efficiency.
