IDEAS home Printed from https://ideas.repec.org/p/col/000137/009080.html
   My bibliography  Save this paper

Economic development and growth in Colombia: An empirical analysis with super-efficiency DEA and panel data models

Author

Listed:
  • Alexander Cotte Poveda

    ()

Abstract

In this paper, we analyse economic development and growth through traditional measures (gross domestic product and human development index) and Data Envelopment Analysis (DEA) in Colombian departments over the period 1993-2007. We use a DEA model to measure and rank economic development and growth from different approaches such as poverty, equality and security. The results show considerable variation in efficiency scores across departments. A second-stage panel data analysis with fixed effects reveals that higher levels of economic activity, quality life, employment and security are associated with a higher efficiency score based on the standards of living, poverty, equality and security. All findings of this analysis should demonstrate that economic development and growth could be achieved most effectively through a decrease in poverty, an increase in equality, a reduction in violence, and improved security. This indicates the need to generate effective policies that guarantee the achievement of these elements in the interest of all members of society.

Suggested Citation

  • Alexander Cotte Poveda, 2011. "Economic development and growth in Colombia: An empirical analysis with super-efficiency DEA and panel data models," SERIE DE DOCUMENTOS EN ECONOMÍA Y VIOLENCIA 009080, CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE).
  • Handle: RePEc:col:000137:009080
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0038012111000358
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. World Bank & United Nations Office on Drugs and Crime, 2007. "Crime, Violence, and Development : Trends, Costs, and Policy Options in the Caribbean," World Bank Other Operational Studies 7687, The World Bank.
    2. Cardenas, Mauricio & Ponton, Adriana, 1995. "Growth and convergence in Colombia: 1950-1990," Journal of Development Economics, Elsevier, vol. 47(1), pages 5-37, June.
    3. אסתר טולידנו, 1998. "מקבלי דמי אבטלה, 1997," Working Papers 415, National Insurance Institute of Israel.
    4. Grimm, Michael & Harttgen, Kenneth & Klasen, Stephan & Misselhorn, Mark, 2008. "A Human Development Index by Income Groups," World Development, Elsevier, vol. 36(12), pages 2527-2546, December.
    5. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
    6. Marcela Meléndez Arjona & Arturo Harker Roa, 2008. "Revisiting economic growth in Colombia. A microeconomic perspective," WORKING PAPERS SERIES. DOCUMENTOS DE TRABAJO 009137, FEDESARROLLO.
    7. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    8. Pombo, Carlos & Taborda, Rodrigo, 2006. "Performance and efficiency in Colombia's power distribution system: Effects of the 1994 reform," Energy Economics, Elsevier, vol. 28(3), pages 339-369, May.
    9. Wayne Nafziger, E. & Auvinen, Juha, 2002. "Economic Development, Inequality, War, and State Violence," World Development, Elsevier, vol. 30(2), pages 153-163, February.
    10. Cotte Poveda Alexander, 2011. "Socio-Economic Development and Violence: An Empirical Application for Seven Metropolitan Areas in Colombia," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 17(1), pages 1-23, September.
    11. Despotis, Dimitris K. & Stamati, Lamprini V. & Smirlis, Yiannis G., 2010. "Data envelopment analysis with nonlinear virtual inputs and outputs," European Journal of Operational Research, Elsevier, vol. 202(2), pages 604-613, April.
    12. Marcela Meléndez Arjona & Arturo Harker Roa, 2008. "Revisiting economic growth in Colombia. A microeconomic perspective," WORKING PAPERS SERIES. DOCUMENTOS DE TRABAJO 009137, FEDESARROLLO.
    13. Alberto Abadie & Javier Gardeazabal, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," NBER Working Papers 8478, National Bureau of Economic Research, Inc.
    14. Despotis, D.K., 2005. "Measuring human development via data envelopment analysis: the case of Asia and the Pacific," Omega, Elsevier, vol. 33(5), pages 385-390, October.
    15. Miki Malul & Yossi Hadad & Avner Ben-Yair, 2009. "Measuring and ranking of economic, environmental and social efficiency of countries," International Journal of Social Economics, Emerald Group Publishing, vol. 36(8), pages 832-843, July.
    16. Alexander Cotte Poveda, 2012. "Estimating Effectiveness of the Control of Violence and Socioeconomic Development in Colombia: An Application of Dynamic Data Envelopment Analysis and Data Panel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 105(3), pages 343-366, February.
    17. Pesaran, M.H., 2004. "‘General Diagnostic Tests for Cross Section Dependence in Panels’," Cambridge Working Papers in Economics 0435, Faculty of Economics, University of Cambridge.
    18. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
    19. Ranis, Gustav & Stewart, Frances & Ramirez, Alejandro, 2000. "Economic Growth and Human Development," World Development, Elsevier, vol. 28(2), pages 197-219, February.
    20. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
    21. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    22. Andrea Bassanini & Stefano Scarpetta, 2003. "The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 9-56.
    23. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    24. R. W. Fogel & L. T. Wimmer, 1992. "Early Indicators of Later Work Levels, Disease, and Death," CPE working papers 0008, University of Chicago - Centre for Population Economics.
    25. E. Colombatto, 2006. "On economic growth and development," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 19(4), pages 243-260, December.
    26. Suri, Tavneet & Boozer, Michael A. & Ranis, Gustav & Stewart, Frances, 2011. "Paths to Success: The Relationship Between Human Development and Economic Growth," World Development, Elsevier, vol. 39(4), pages 506-522, April.
    27. Raab, Raymond L. & Feroz, Ehsan Habib, 2007. "A productivity growth accounting approach to the ranking of developing and developed nations," The International Journal of Accounting, Elsevier, vol. 42(4), pages 396-415, December.
    28. David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, vol. 3(2), pages 168-177, June.
    29. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    30. Christopher F Baum, 2001. "Residual diagnostics for cross-section time series regression models," Stata Journal, StataCorp LP, vol. 1(1), pages 101-104, November.
    31. Enrico Colombatto, 2006. "On Economic Growth and Development," CAE Working Papers 38, Aix-Marseille Université, CERGAM.
    32. Torres, Magui Moreno & Anderson, Michael, 2004. "Fragile States: Defining Difficult Environments For Poverty Reduction," PRDE Working Papers 12822, Department for International Development (DFID) (UK).
    33. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LP, vol. 7(3), pages 281-312, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexander Cotte Poveda, 2011. "Economic Development, Inequality and Poverty: An Analysis of Urban Violence in Colombia," Oxford Development Studies, Taylor & Francis Journals, vol. 39(4), pages 453-468, December.
    2. repec:mje:mjejnl:v:12:y:2017:i:3:p:63-73 is not listed on IDEAS
    3. repec:mje:mjejnl:v:13:y:2017:i:3:p:63-73 is not listed on IDEAS
    4. repec:eee:soceps:v:59:y:2017:i:c:p:79-92 is not listed on IDEAS
    5. Wang, Yi-Shu & Xie, Bai-Chen & Shang, Li-Feng & Li, Wen-Hua, 2013. "Measures to improve the performance of China’s thermal power industry in view of cost efficiency," Applied Energy, Elsevier, vol. 112(C), pages 1078-1086.
    6. Põldaru, Reet & Roots, Jüri, 2014. "A PCA–DEA approach to measure the quality of life in Estonian counties," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 65-73.

    More about this item

    Keywords

    Economic development; Growth; Efficiency; Data envelopment analysis; Colombian departments;

    JEL classification:

    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:col:000137:009080. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexander Cotte Poveda). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.