Measuring and Explaining the Impact of Productive Efficiency on Economic Development
A limitation of most empirical cross-country studies that focus on determinants of gross domestic product (GDP) is that they fail to distinguish explicitly between inputs used in production and conditions that facilitate production. For example, ph...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Published by Oxford University Press on behalf of the World Bank
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/01/17747432/measuring-explaining-impact-productive-efficiency-economic-development http://hdl.handle.net/10986/16483 |
| id |
okr-10986-16483 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-164832021-04-23T14:03:29Z Measuring and Explaining the Impact of Productive Efficiency on Economic Development Jayasuriya, Ruwan Wodon, Quentin AGRICULTURE BANK OF ENGLAND BASE YEAR BASKET OF GOODS BLACK MARKET BUREAUCRATIC QUALITY CAPITAL STOCK CONSUMER PRICE INDEX COUNTRY COMPARISONS COUNTRY RISK CREDIBILITY DECISION MAKING DIVISION OF LABOR DOMESTIC CAPITAL DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC STATISTICS ECONOMIC STRUCTURE ECONOMIC SURVEYS ECONOMICS ECONOMICS OF EDUCATION ECONOMIES OF SCALE EMPIRICAL STUDIES EMPLOYMENT EXOGENOUS VARIABLES FINANCIAL MARKETS GDP GLOBALIZATION GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH THEORY HEALTH SERVICES HUMAN CAPITAL INDUSTRIALIZATION INEFFICIENCY INFLATION INFLATION RATE INFLATION RATES INNOVATION INPUT USE INTERNATIONAL BANK LABOR FORCE LABOR PRODUCTIVITY LEGAL SYSTEM LOCAL BUSINESSES MACROECONOMIC CONDITIONS MACROECONOMIC ENVIRONMENT MACROECONOMIC MANAGEMENT MACROECONOMIC STABILITY MARGINAL TAX RATES MARKET DISTORTION MARKET MECHANISMS MARKET POWER MARKET STRUCTURE MARKET STRUCTURES MAXIMUM LIKELIHOOD ESTIMATION OIL OUTPUTS PEER REVIEW POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PORTFOLIOS POST OFFICES PRICE CONTROLS PRICE DIFFERENCES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTION PROCESS PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC ENTERPRISES PURCHASING POWER RATING SYSTEMS REAL GDP REGIONAL DUMMY REPUDIATION RETAIL BANKING RETURNS RETURNS TO SCALE RULE OF LAW STOCK DATA TAX TECHNOLOGICAL CHANGE TECHNOLOGY TRANSFERS TELECOMMUNICATIONS URBANIZATION A limitation of most empirical cross-country studies that focus on determinants of gross domestic product (GDP) is that they fail to distinguish explicitly between inputs used in production and conditions that facilitate production. For example, physical capital, human capital, and labor are production inputs, whereas the quality of institutions, macroeconomic stability, and market quality are conditions that facilitate production. This article takes this distinction seriously and uses a stochastic frontier approach to study factors affecting economic performance. A panel data set of 71 countries for the 1980-98 periods is used to estimate a production frontier with physical capital, human capital, and labor as inputs. The article also analyzes what drives productive efficiency, using the institutional framework, macroeconomic stability, market quality, and urbanization as possible explanatory factors. Urbanization turns out to be an important determinant, with the rule of law, inflation rate, and market quality also affecting productive efficiency. 2014-01-03T21:13:55Z 2014-01-03T21:13:55Z 2005-01 Journal Article http://documents.worldbank.org/curated/en/2005/01/17747432/measuring-explaining-impact-productive-efficiency-economic-development World Bank Economic Review doi:10.1093/wber/lhi006 http://hdl.handle.net/10986/16483 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE BANK OF ENGLAND BASE YEAR BASKET OF GOODS BLACK MARKET BUREAUCRATIC QUALITY CAPITAL STOCK CONSUMER PRICE INDEX COUNTRY COMPARISONS COUNTRY RISK CREDIBILITY DECISION MAKING DIVISION OF LABOR DOMESTIC CAPITAL DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC STATISTICS ECONOMIC STRUCTURE ECONOMIC SURVEYS ECONOMICS ECONOMICS OF EDUCATION ECONOMIES OF SCALE EMPIRICAL STUDIES EMPLOYMENT EXOGENOUS VARIABLES FINANCIAL MARKETS GDP GLOBALIZATION GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH THEORY HEALTH SERVICES HUMAN CAPITAL INDUSTRIALIZATION INEFFICIENCY INFLATION INFLATION RATE INFLATION RATES INNOVATION INPUT USE INTERNATIONAL BANK LABOR FORCE LABOR PRODUCTIVITY LEGAL SYSTEM LOCAL BUSINESSES MACROECONOMIC CONDITIONS MACROECONOMIC ENVIRONMENT MACROECONOMIC MANAGEMENT MACROECONOMIC STABILITY MARGINAL TAX RATES MARKET DISTORTION MARKET MECHANISMS MARKET POWER MARKET STRUCTURE MARKET STRUCTURES MAXIMUM LIKELIHOOD ESTIMATION OIL OUTPUTS PEER REVIEW POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PORTFOLIOS POST OFFICES PRICE CONTROLS PRICE DIFFERENCES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTION PROCESS PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC ENTERPRISES PURCHASING POWER RATING SYSTEMS REAL GDP REGIONAL DUMMY REPUDIATION RETAIL BANKING RETURNS RETURNS TO SCALE RULE OF LAW STOCK DATA TAX TECHNOLOGICAL CHANGE TECHNOLOGY TRANSFERS TELECOMMUNICATIONS URBANIZATION |
| spellingShingle |
AGRICULTURE BANK OF ENGLAND BASE YEAR BASKET OF GOODS BLACK MARKET BUREAUCRATIC QUALITY CAPITAL STOCK CONSUMER PRICE INDEX COUNTRY COMPARISONS COUNTRY RISK CREDIBILITY DECISION MAKING DIVISION OF LABOR DOMESTIC CAPITAL DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RESEARCH ECONOMIC STATISTICS ECONOMIC STRUCTURE ECONOMIC SURVEYS ECONOMICS ECONOMICS OF EDUCATION ECONOMIES OF SCALE EMPIRICAL STUDIES EMPLOYMENT EXOGENOUS VARIABLES FINANCIAL MARKETS GDP GLOBALIZATION GOVERNMENT POLICIES GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH THEORY HEALTH SERVICES HUMAN CAPITAL INDUSTRIALIZATION INEFFICIENCY INFLATION INFLATION RATE INFLATION RATES INNOVATION INPUT USE INTERNATIONAL BANK LABOR FORCE LABOR PRODUCTIVITY LEGAL SYSTEM LOCAL BUSINESSES MACROECONOMIC CONDITIONS MACROECONOMIC ENVIRONMENT MACROECONOMIC MANAGEMENT MACROECONOMIC STABILITY MARGINAL TAX RATES MARKET DISTORTION MARKET MECHANISMS MARKET POWER MARKET STRUCTURE MARKET STRUCTURES MAXIMUM LIKELIHOOD ESTIMATION OIL OUTPUTS PEER REVIEW POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY PORTFOLIOS POST OFFICES PRICE CONTROLS PRICE DIFFERENCES PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION INPUTS PRODUCTION PROCESS PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC ENTERPRISES PURCHASING POWER RATING SYSTEMS REAL GDP REGIONAL DUMMY REPUDIATION RETAIL BANKING RETURNS RETURNS TO SCALE RULE OF LAW STOCK DATA TAX TECHNOLOGICAL CHANGE TECHNOLOGY TRANSFERS TELECOMMUNICATIONS URBANIZATION Jayasuriya, Ruwan Wodon, Quentin Measuring and Explaining the Impact of Productive Efficiency on Economic Development |
| description |
A limitation of most empirical
cross-country studies that focus on determinants of gross
domestic product (GDP) is that they fail to distinguish
explicitly between inputs used in production and conditions
that facilitate production. For example, physical capital,
human capital, and labor are production inputs, whereas the
quality of institutions, macroeconomic stability, and market
quality are conditions that facilitate production. This
article takes this distinction seriously and uses a
stochastic frontier approach to study factors affecting
economic performance. A panel data set of 71 countries for
the 1980-98 periods is used to estimate a production
frontier with physical capital, human capital, and labor as
inputs. The article also analyzes what drives productive
efficiency, using the institutional framework, macroeconomic
stability, market quality, and urbanization as possible
explanatory factors. Urbanization turns out to be an
important determinant, with the rule of law, inflation rate,
and market quality also affecting productive efficiency. |
| format |
Journal Article |
| author |
Jayasuriya, Ruwan Wodon, Quentin |
| author_facet |
Jayasuriya, Ruwan Wodon, Quentin |
| author_sort |
Jayasuriya, Ruwan |
| title |
Measuring and Explaining the Impact of Productive Efficiency on Economic Development |
| title_short |
Measuring and Explaining the Impact of Productive Efficiency on Economic Development |
| title_full |
Measuring and Explaining the Impact of Productive Efficiency on Economic Development |
| title_fullStr |
Measuring and Explaining the Impact of Productive Efficiency on Economic Development |
| title_full_unstemmed |
Measuring and Explaining the Impact of Productive Efficiency on Economic Development |
| title_sort |
measuring and explaining the impact of productive efficiency on economic development |
| publisher |
Published by Oxford University Press on behalf of the World Bank |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2005/01/17747432/measuring-explaining-impact-productive-efficiency-economic-development http://hdl.handle.net/10986/16483 |
| _version_ |
1764433352793784320 |