The Role of Efficiency as an Explanation of International Income Differences
Why are some countries richer than others? If, as some recent work has suggested, the answer lies not in differences in physical and human capital accumulation but in differences in productivity, this merely shifts the question to: why are some countries more productive than others? This paper investigates differences in productive efficiency as an explanation of international income difference using stochastic frontier analysis. We find that human capital and geography are important in explaining differences in productive inefficiency in a panel of 82 countries over the period 1960-87. We also investigate the effects of government policy, as measured by its fiscal stance, on a subset of OECD countries over a shorter period. We find that increases in the budget surplus are associated with lower levels of productive efficiency in the economy as a whole.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Dec 2002|
|Date of revision:|
|Contact details of provider:|| Postal: 2 Dean Trench Street Smith Square London SW1P 3HE|
Web page: http://niesr.ac.uk
When requesting a correction, please mention this item's handle: RePEc:nsr:niesrd:137. 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: (Library & Information Manager)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.