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The fog of OECD and Non-OECD country efficiency:a data envelopment analysis approach

Author

Listed:
  • Maxwell Hsu
  • Xueming Luo
  • Gary H. Chao

    (University of Wisconsin at Whitewater, USA
    University of Texas at Arlington, USA
    Kutztown University, USA)

Abstract

Focusing on three input variables (i.e., government efficiency, business efficiency, and infrastructure advancement) and one output variable (i.e., economic performance), we employ the Data Envelopment Analysis (DEA) technique in an attempt to make an efficiency comparison between the developed economies (i.e., OECD countries) and the less developed economies (i.e., non-OECD countries). Among the studied sample nations, Indonesia and Argentina are found to outperform other nations across all efficiency measures. Our findings also reveal a significant difference between the OECD and the non-OECD countries in terms of the scale efficiency and overall technical and scale efficiency. We recommend further studies to incorporate additional inputs/outputs (e.g., risk factor) in the DEA model and find innovative ways and means to facilitate the cross-country benchmark process.

Suggested Citation

  • Maxwell Hsu & Xueming Luo & Gary H. Chao, 2008. "The fog of OECD and Non-OECD country efficiency:a data envelopment analysis approach," Journal of Developing Areas, Tennessee State University, College of Business, vol. 42(1), pages 81-93, September.
    • Handle: RePEc:jda:journl:vol.42:year:2008:issue1:pp:81-93
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    Citations

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    Cited by:

    1. Tengfei Wang & Jong Woo Kang & Vincent F. Valentine, 2020. "A holistic analysis of national e-commerce and logistics development," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 500-513, September.
    2. Lukáš Melecký & Michaela Staníčková & Jana Hančlová, 2019. "Nonparametric Approach to Evaluation of Economic and Social Development in the EU28 Member States by DEA Efficiency," JRFM, MDPI, vol. 12(2), pages 1-34, April.
    3. Rambe, Roosemarina Anggraini & Wibowo, Kodrat & Febriani, Ratu Eva & Septriani, Septriani, 2020. "Assessing the Local Government Efficiency: Evidence from Sumatra, Indonesia," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 27(2).

    More about this item

    Keywords

    Country Competitiveness; Data Envelopment Analysis; Economic Efficiency;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F01 - International Economics - - General - - - Global Outlook

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