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Efficiency assessment of Costa Rica’s counties: A non-parametric analysis of the county competitiveness index

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  • Araya, Manuel

    (Costa Rica Institute of Technology)

Abstract

This study employs a Data Envelopment Analysis (DEA) model with a single constant input to scrutinize the competitive efficiency of Costa Rican counties for the year 2016. By using the seven dimensions (pillars) of the County Competitiveness Index (ICC) as outputs of the proposed non-parametric production function, the efficiency results indicate that, on average, Costa Rican counties can improve their competitive efficiency 56.84%. The findings suggest that the configuration of competitive pillars has significant implications for efficiency assessments. For more developed regions with urban agglomerations, competitive pillars related to infrastructure, employment, quality of life and innovation are relevant policy priorities shaping competitive efficiency; while employment and quality of life indicators are the main pillars explaining the competitive efficiency in less developed regions. The County Competitiveness Index is a valuable instrument to monitor counties’ competitive performance, and the proposed analytical approach ‒i.e., DEA model‒ may offer useful information to policy observers on what strategic actions can help to optimize resource allocation policies and, subsequently, county competitiveness.

Suggested Citation

  • Araya, Manuel, 2019. "Efficiency assessment of Costa Rica’s counties: A non-parametric analysis of the county competitiveness index," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 13(3), pages 78-92.
    • Handle: RePEc:ris:tecemp:1913
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    References listed on IDEAS

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    1. Zoltán J. Ács & Erkko Autio & László Szerb, 2015. "National Systems of Entrepreneurship: Measurement issues and policy implications," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 28, pages 523-541, Edward Elgar Publishing.
    2. Balaguer-Coll, Maria Teresa & Prior, Diego & Tortosa-Ausina, Emili, 2007. "On the determinants of local government performance: A two-stage nonparametric approach," European Economic Review, Elsevier, vol. 51(2), pages 425-451, February.
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    Cited by:

    1. Acs, Zoltan & Lafuente, Esteban & Szerb, László, 2022. "A note on the configuration of the digital ecosystem in Latin America," TEC Empresarial, School of Business, Costa Rica Institute of Technology (ITCR), vol. 16(1), pages 1-19.
    2. Lafuente, Esteban & Araya, Manuel & Leiva, Juan Carlos, 2022. "Assessment of local competitiveness: A composite indicator analysis of Costa Rican counties using the ‘Benefit of the Doubt’ model," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    3. Lafuente, Esteban & Ács, Zoltán J. & Szerb, László, 2022. "A composite indicator analysis for optimizing entrepreneurial ecosystems," Research Policy, Elsevier, vol. 51(9).

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