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Relative National Efficiency and Country Size: Evidence for Developing Countries

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Author Info

  • Chris Milner

    () (University of Nottingham)

  • Thomas Weyman-Jones

    () (Loughborough University)

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. Copyright Blackwell Publishing Ltd 2003

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 7 (2003)
Issue (Month): 1 (February)
Pages: 1-14

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Handle: RePEc:bla:rdevec:v:7:y:2003:i:1:p:1-14

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

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Cited by:
  1. 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.
  2. Patrick Guillaumont, 2010. "Assessing the Economic Vulnerability of Small Island Developing States and the Least Developed Countries," Working Papers id:2625, eSocialSciences.
  3. 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, M.E. Sharpe, Inc., vol. 47(0), pages 40-53, July.
  4. 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.
  5. Guillaumont, Patrick, 2008. "An Economic Vulnerability Index: Its Design and Use for International Development Policy," Working Papers RP2008/99, World Institute for Development Economic Research (UNU-WIDER).

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