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Efficiency, Inefficiency and the MENA Frontier

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  • McAdam, Peter
  • Christopoulos, Dimitris

Abstract

In a stochastic frontier setting, we examine technical efficiency in the Middle East and North Africa (MENA). Evidence suggests that in addition to economic indicators, political and social ones play a key role in development and frontier technical efficiency profiles. The MENA have been characterized by increasing economic efficiency over time but with marked polarization. The paper analyses and nest many key hypotheses in the literature e.g., the contributions of religion, of natural resources, demographic pressures, human capital etc. The originality of our contribution is the use of a large data set (including principal components), and extensive robustness checks. The paper should set a comprehensive benchmark and cross check for related studies of development technical efficiency. JEL Classification: C33, C38, C55, D24, E23, O11

Suggested Citation

  • McAdam, Peter & Christopoulos, Dimitris, 2015. "Efficiency, Inefficiency and the MENA Frontier," Working Paper Series 1757, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20151757
    Note: 50336
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    2. Mahieddine Adnan Ghecham, 2020. "Further attempt to explain the oil curse mechanism using a debt overhang concept," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 48(4), pages 852-868, October.

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    More about this item

    Keywords

    development; frontier efficiency; MENA; stochastic frontier;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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