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What drives national efficiency in sub-Saharan Africa

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  • Danquah, Michael
  • Ouattara, Bazoumana

Abstract

In this paper, we use stochastic frontier analysis to examine whether differences in the transfer and absorption of technology help to explain cross-country differences in national efficiency levels in sub-Saharan Africa over the period 1970–2010. We find that trade policy on openness, machinery imports, stock of R&D, landlockedness and quality of institutions play a significant and quantitatively important role in explaining the differences in efficiency scores in SSA. Human capital, however, has an insignificant effect on efficiency.

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  • Danquah, Michael & Ouattara, Bazoumana, 2015. "What drives national efficiency in sub-Saharan Africa," Economic Modelling, Elsevier, vol. 44(C), pages 171-179.
    • Handle: RePEc:eee:ecmode:v:44:y:2015:i:c:p:171-179
    DOI: 10.1016/j.econmod.2014.10.019
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