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Institutions, Freedom, and Technical Efficiency

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  • Lee C. Adkins
  • Ronald L. Moomaw
  • Andreas Savvides

Abstract

The impact of institutions on economic performance is currently the subject of much research. In this study we use panel data to estimate a stochastic production frontier and the sources of inefficiency for a broad set of countries. A maximum‐likelihood procedure is used to estimate the parameters for the stochastic production frontier and the determinants of inefficiency simultaneously. Our results show that institutions that promote greater economic freedom in turn promote efficiency.

Suggested Citation

  • Lee C. Adkins & Ronald L. Moomaw & Andreas Savvides, 2002. "Institutions, Freedom, and Technical Efficiency," Southern Economic Journal, John Wiley & Sons, vol. 69(1), pages 92-108, July.
    • Handle: RePEc:wly:soecon:v:69:y:2002:i:1:p:92-108
    DOI: 10.1002/j.2325-8012.2002.tb00479.x
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    Cited by:

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    3. Alfonsina Iona & Andrea Calef & Ifigenia Georgiou, 2023. "Credit Market Freedom and Corporate Decisions," Mathematics, MDPI, vol. 11(7), pages 1-13, March.
    4. Nathan J. Ashby, 2007. "Economic Freedom and Migration Flows between U.S. States," Southern Economic Journal, John Wiley & Sons, vol. 73(3), pages 677-697, January.
    5. Méon, Pierre-Guillaume & Weill, Laurent, 2010. "Is Corruption an Efficient Grease?," World Development, Elsevier, vol. 38(3), pages 244-259, March.
    6. 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.
    7. Juan Cándido Gómez‐Gallego & María del Rocío Moreno‐Enguix & María Gómez‐Gallego, 2022. "The relation between the index of economic freedom and good governance with efficiency of the European Structural Funds," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 327-349, April.
    8. Hakimi, Abdelaziz & Hamdi, Helmi & Khemiri, Mohamed Ali, 2023. "Banking in the MENA region: The pro-active role of financial and economic freedom," Journal of Policy Modeling, Elsevier, vol. 45(5), pages 1058-1076.
    9. Md. Shakib Hossain, 2016. "Foreign Direct Investment, Economic Freedom and Economic Growth: Evidence from Developing Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 200-214, November.
    10. Nathan J. Ashby, 2007. "Economic Freedom and Migration Flows between U.S. States," Southern Economic Journal, Southern Economic Association, vol. 73(3), pages 677-697, January.
    11. Hunjra, Ahmed Imran & Islam, Faridul & Verhoeven, Peter & Hassan, M. Kabir, 2022. "The impact of a dual banking system on macroeconomic efficiency," Research in International Business and Finance, Elsevier, vol. 61(C).
    12. Koffi Délali Kpognon & Henri Atangana Ondoa & Mamadou Bah & Peter Asare-Nuamah, 2022. "Fostering Labour Productivity Growth for Productive and Decent Job Creation in Sub-Saharan African Countries: the Role of Institutional Quality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1962-1992, September.
    13. Ndubuisi, Gideon & Otioma, Chuks & Owusu, Solomon & Tetteh, Godsway Korku, 2022. "ICTs quality and technical efficiency: An empirical analysis," Telecommunications Policy, Elsevier, vol. 46(10).

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