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The effect of human capital on countries’ economic efficiency

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  • Tzeremes, Nickolaos G.

Abstract

The paper applies time-dependent conditional frontier estimators in order to examine the effect of human capital on countries’ economic efficiency levels. Specifically, time-dependent conditional full and partial efficiency measures are applied to a sample of 123 countries for the period of 1970–2011. The results from the nonparametric analysis reveal a nonlinear relationship between countries’ human capital, technological change and efficiency levels.

Suggested Citation

  • Tzeremes, Nickolaos G., 2014. "The effect of human capital on countries’ economic efficiency," Economics Letters, Elsevier, vol. 124(1), pages 127-131.
    • Handle: RePEc:eee:ecolet:v:124:y:2014:i:1:p:127-131
    DOI: 10.1016/j.econlet.2014.05.006
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    5. Badin, Luiza & Daraio, Cinzia & Simar, Léopold, 2010. "Optimal bandwidth selection for conditional efficiency measures: A data-driven approach," European Journal of Operational Research, Elsevier, vol. 201(2), pages 633-640, March.
    6. Cinzia Daraio & Léopold Simar, 2005. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," Journal of Productivity Analysis, Springer, vol. 24(1), pages 93-121, September.
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    8. Cinzia Daraio & Léopold Simar, 2007. "Conditional nonparametric frontier models for convex and nonconvex technologies: a unifying approach," Journal of Productivity Analysis, Springer, vol. 28(1), pages 13-32, October.
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    Cited by:

    1. Daraio, Cinzia & Simar, Leopold & Wilson, Paul, 2016. "Nonparametric Estimation of Efficiency in the Presence of Environmental Variables," LIDAM Discussion Papers ISBA 2016027, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    2. Biswajit Maitra & Moutushi Chakraborty, 2021. "International trade, human capital and economic growth in Sri Lanka," International Journal of Economic Policy Studies, Springer, vol. 15(2), pages 405-426, September.
    3. Degl’Innocenti, Marta & Matousek, Roman & Sevic, Zeljko & Tzeremes, Nickolaos G., 2017. "Bank efficiency and financial centres: Does geographical location matter?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 46(C), pages 188-198.
    4. Nickolaos G. Tzeremes, 2018. "Financial Development and Countries’ Production Efficiency: A Nonparametric Analysis," JRFM, MDPI, vol. 11(3), pages 1-13, August.
    5. Munusamy, Subramaniam & Rajamoorthy, Yogambigai, 2020. "Factor Accumulation and Total Factor Productivity Growth: ASEAN Economies," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 67-76.
    6. Koray Uğurluay & Dervis Kirikkaleli, 2022. "Sustainable Technology in High-Income Economies: The Role of Innovation," Sustainability, MDPI, vol. 14(6), pages 1-16, March.
    7. Jose M. Cordero & Francisco Pedraja-Chaparro & Elsa C. Pisaflores & Cristina Polo, 2017. "Efficiency assessment of Portuguese municipalities using a conditional nonparametric approach," Journal of Productivity Analysis, Springer, vol. 48(1), pages 1-24, August.
    8. Umar, Muhammad & Mirza, Nawazish & Hasnaoui, Jamila Abaidi & Rochoń, Małgorzata Porada, 2022. "The nexus of carbon emissions, oil price volatility, and human capital efficiency," Resources Policy, Elsevier, vol. 78(C).
    9. Shen, Neng & Peng, Hui & Wang, Qunwei, 2021. "Spatial dependence, agglomeration externalities and the convergence of carbon productivity," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    10. Kai Du & Allan O’Connor, 2018. "Entrepreneurship and advancing national level economic efficiency," Small Business Economics, Springer, vol. 50(1), pages 91-111, January.
    11. Biswajit Maitra, 2018. "Investment in Physical, Human Capital, Economic Growth and Life Expectancy in Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(2), pages 251-269, September.
    12. Kounetas, Kostas & Napolitano, Oreste, 2018. "Modeling the incidence of international trade on Italian regional productive efficiency using a meta-frontier DEA approach," Economic Modelling, Elsevier, vol. 71(C), pages 45-58.
    13. Jianqing Zhang & Song Wang & Peilei Yang & Fei Fan & Xueli Wang, 2020. "Analysis of Scale Factors on China’s Sustainable Development Efficiency Based on Three-Stage DEA and a Double Threshold Test," Sustainability, MDPI, vol. 12(6), pages 1-26, March.
    14. Cordero, José Manuel & Pedraja-Chaparro, Francisco & Pisaflores, Elsa C. & Polo, Cristina, 2016. "Efficiency assessment of Portuguese municipalities using a conditional nonparametric approach," MPRA Paper 70674, University Library of Munich, Germany.
    15. Fukuyama, Hirofumi & Matousek, Roman & Tzeremes, Nickolaos G., 2020. "A Nerlovian cost inefficiency two-stage DEA model for modeling banks’ production process: Evidence from the Turkish banking system," Omega, Elsevier, vol. 95(C).
    16. Gideon Ndubuisi & Solomon Owusu, 2023. "Trade for catch-up: examining how global value chains participation affects productive efficiency," Journal of Productivity Analysis, Springer, vol. 59(2), pages 195-215, April.
    17. George Halkos & Shunsuke Managi & Nickolaos Tzeremes, 2015. "The effect of natural and man-made disasters on countries’ production efficiency," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 4(1), pages 1-13, December.
    18. Kounetas, Kostas & Napolitano, Oreste & Stavropoulos, Spyridon & Burger, Martijn, 2018. "European Regional Productive Performance under a Metafrontier Framework. The role of patents and human capital on technology gap?," MPRA Paper 88957, University Library of Munich, Germany, revised 17 Jul 2018.
    19. Kai Du & Allan O’Connor, 2021. "Examining economic complexity as a holistic innovation system effect," Small Business Economics, Springer, vol. 56(1), pages 237-257, January.

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    More about this item

    Keywords

    Human capital; Economic efficiency; Time-dependent frontier models; Conditional efficiency; Nonparametric analysis;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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