Economic Efficiency and Growth: Evidence from Brazil, China, and India
AbstractWe 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. In the same period, production efficiency in Brazil has declined somewhat from relatively high initial levels and the gap between production efficiency between these countries has narrowed substantially, supporting more rapid growth in China and India relative to Brazil.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/86.
Length: 22 pages
Date of creation: 2008
Date of revision:
growth; trade; production;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-18 (All new papers)
- NEP-CWA-2008-11-18 (Central & Western Asia)
- NEP-DEV-2008-11-18 (Development)
- NEP-EFF-2008-11-18 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pedro Cavalcanti Ferreira & JosÈ Luiz Rossi, 2003. "New Evidence from Brazil on Trade Liberalization and Productivity Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1383-1405, November.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Jose De Gregorio, 1991.
"Economic Growth in Latin America,"
IMF Working Papers
91/71, International Monetary Fund.
- Mauricio Mesquita Moreira, 2004. "Brazil’s Trade Liberalization and Growth: Has it Failed?," International Trade 0412008, EconWPA.
- Nazmi, Nader, 2002. "Global finance, sovereign risk and economic performance of Brazil," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(5), pages 865-874.
- Fajnzylber, Pablo & Lederman, Daniel, 1999. "Economic reforms and total factor productivity growth in Latin America and the Caribbean (1950-95) - an empirical note," Policy Research Working Paper Series 2114, The World Bank.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Prasad, Eswar S., 2009.
"Is the Chinese growth miracle built to last?,"
China Economic Review,
Elsevier, vol. 20(1), pages 103-123, March.
- Pang, Gaobo & Pinto, Brian & Wes, Marina, 2007. "India rising - faster growth, lower indebtedness," Policy Research Working Paper Series 4241, The World Bank.
- Richard Herd & Sean Dougherty, 2007. "Growth Prospects in China and India Compared," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 65-89, June.
- Bonelli, Regis, 1992. "Growth and productivity in Brazilian industries : Impacts of trade orientation," Journal of Development Economics, Elsevier, vol. 39(1), pages 85-109, July.
- 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 279-86, July.
- Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
- 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.
- Wenjun Liu & Shoji Nishijima, 2012. "Productivity and Openness: Firm Level Evidence in Brazilian Manufacturing Industries," Discussion Paper Series DP2012-01, Research Institute for Economics & Business Administration, Kobe University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.