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Relative National Efficiency and Country Size: Evidence for Developing Countries

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  • Chris Milner
  • Thomas Weyman–Jones

Abstract

The paper investigates the impact of country size on aggregate national efficiency, using a nonparametric programming methodology to measure output distance functions and relative national efficiency for a group of 85 developing countries over the period 1980–89. Tobit regression models are estimated in order to identify the influence of national and policy characteristics on intercountry differences in relative efficiency levels. The results indicate that there is a strong positive developmental–efficiency relationship and evidence of a positive impact of trade policy openness on aggregate efficiency. There is also some evidence of a country size constraint on efficiency when other influences are controlled for.

Suggested Citation

  • Chris Milner & Thomas Weyman–Jones, 2003. "Relative National Efficiency and Country Size: Evidence for Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 1-14, February.
    • Handle: RePEc:bla:rdevec:v:7:y:2003:i:1:p:1-14
    DOI: 10.1111/1467-9361.00171
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    Citations

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    Cited by:

    1. Danish Ahmed SIDDIQUI & Qazi Masood AHMED, 2019. "Are institutions a crucial determinant of cross country economic efficiency? A two-stage double bootstrap data envelopment analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(618), S), pages 89-114, Spring.
    2. Olfa Alouini & Paul Hubert, 2019. "Country size, economic performance and volatility," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(4), pages 139-163.
    3. Patrick Guillaumont, 2010. "Assessing the Economic Vulnerability of Small Island Developing States and Least Developed Countries," Post-Print hal-00594797, HAL.
    4. Glass, Anthony J. & Kenjegalieva, Karligash & Ajayi, Victor & Adetutu, Morakinyo & Sickles, Robin C., 2016. "Relative Winners and Losers from Efficiency Spillovers in Africa with Policy Implications for Regional Integration," Working Papers 16-003, Rice University, Department of Economics.
    5. Michael Danquah and Bazoumana Ouattara, 2018. "Comparison of Stochastic Frontier Approaches for Estimating National Efficiency: An Application to Sub-Saharan African Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 119-142, September.
    6. Danquah, Michael & Ouattara, Bazoumana, 2015. "What drives national efficiency in sub-Saharan Africa," Economic Modelling, Elsevier, vol. 44(C), pages 171-179.
    7. repec:hal:spmain:info:hdl:2441/5ka78fknuu8fgruprbdgllq262 is not listed on IDEAS
    8. repec:spo:wpmain:info:hdl:2441/5ka78fknuu8fgruprbdgllq262 is not listed on IDEAS
    9. Patrick Guillaumont, 2010. "Assessing the Economic Vulnerability of Small Island Developing States and the Least Developed Countries," Journal of Development Studies, Taylor & Francis Journals, vol. 46(5), pages 828-854.
    10. Morakinyo O. Adetutu, Anthony J. Glass, and Thomas G. Weyman-Jones, 2016. "Economy-wide Estimates of Rebound Effects: Evidence from Panel Data," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    11. Krishna G. Iyer & Alicia N. Rambaldi & Kam Ki Tang, 2008. "Efficiency externalities of trade and alternative forms of foreign investment in OECD countries," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(6), pages 749-766.
    12. Sophia P. Dimelis & Sotiris K. Papaioannou, 2011. "Technical Efficiency and the Role of ICT: A Comparison of Developed and Developing Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 40-53, July.
    13. Patrick Guillaumont, 2009. "An Economic Vulnerability Index: Its Design and Use for International Development Policy," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 193-228.
    14. Henry, Michael & Kneller, Richard & Milner, Chris, 2009. "Trade, technology transfer and national efficiency in developing countries," European Economic Review, Elsevier, vol. 53(2), pages 237-254, February.
    15. Miljkovic, Dragan & Shaik, Saleem, 2010. "The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture," Agribusiness & Applied Economics Report 95749, North Dakota State University, Department of Agribusiness and Applied Economics.
    16. repec:agr:journl:v:1(618):y:2019:i:1(618):p:89-114 is not listed on IDEAS
    17. Patrick GUILLAUMONT, 2007. "EVI and its Use. Design of an Economic Vulnerability Index and its Use for International Development Policy," Working Papers 200714, CERDI.
    18. Nitin Arora & Ishfaq Ali Ganaie, 2023. "How Much Technically Efficient Is The South Asian Region? An Intra-Regional Comparison Among Its Affiliates," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 24(1), pages 20-40, March.
    19. Danish Ahmed SIDDIQUI & Qazi Masood AHMED, 2019. "Exploring the role of institutions in cross country Malmquist productivity analysis: A two-stage double bootstrap DEA approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 241-264, Winter.
    20. Patrick Guillaumont, 2011. "An Economic Vulnerability Index: Its Design and Use for International Development Policy," CERDI Working papers halshs-00554328, HAL.
    21. Patrick Guillaumont, 2011. "EVI and its Use. Design of an Economic Vulnerability Index and its Use for International Development Policy," CERDI Working papers halshs-00557091, HAL.
    22. repec:agr:journl:v:4(621):y:2019:i:4(621):p:241-264 is not listed on IDEAS
    23. Justice Gameli Djokoto, 2013. "Trade Openness and Technical Efficiency Change in Ghana’s Agriculture," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(1), pages 1-10.
    24. Hart, Jarret, 2013. "Impact of Trade Openness on Technical Efficiency: Agricultural Sector of the European Union," 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182500, International Agricultural Trade Research Consortium.

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