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Economic Efficiency and Growth: Evidence from Brazil, China, and India

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  • Nader Nazmi
  • Julio E. Revilla

Abstract

We compare economic efficiencies in Brazil, India, and China, where economic efficiency measures the gap between potential and actual output for a given input combination and technological factor. We use stochastic production frontier models to measure the contributions of factors of production and technology to growth and estimate non-positive error terms that capture production inefficiencies in each country. The results suggest that China and India had relatively inefficient production in the early 1980s but have since improved production efficiency substantially.

Suggested Citation

  • Nader Nazmi & Julio E. Revilla, 2008. "Economic Efficiency and Growth: Evidence from Brazil, China, and India," WIDER Working Paper Series RP2008-86, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2008-86
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    References listed on IDEAS

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    13. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-286, July.
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    Cited by:

    1. Zwane, Talent & Biyase, Mduduzi & Maleka, Mokgadi & Maluleka, Abelwe, 2020. "Technical Efficiency and Economic Growth in the SADC Region," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 73(2), pages 307-324.
    2. Wenjun Liu & Shoji Nishijima, 2013. "Productivity and openness: firm level evidence in Brazilian manufacturing industries," Economic Change and Restructuring, Springer, vol. 46(4), pages 363-384, November.

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    Keywords

    Economic development; International trade; Production (Economic theory); Productivity; Technology;
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