Measuring and Explaining theImpact of Productive Efficiency on Economic Development

Jayasuriya, Ruwan ; Wodon, Quentin

Published by Oxford University Press on behalf of the World Bank

关键词: AGRICULTURE;    BANK OF ENGLAND;    BASE YEAR;    BASKET OF GOODS;    BLACK MARKET;   

DOI  :  10.1093/wber/lhi006
RP-ID  :  77484

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

A limitation of most empiricalcross-country studies that focus on determinants of grossdomestic product (GDP) is that they fail to distinguishexplicitly between inputs used in production and conditionsthat facilitate production. For example, physical capital,human capital, and labor are production inputs, whereas thequality of institutions, macroeconomic stability, and marketquality are conditions that facilitate production. Thisarticle takes this distinction seriously and uses astochastic frontier approach to study factors affectingeconomic performance. A panel data set of 71 countries forthe 1980-98 periods is used to estimate a productionfrontier with physical capital, human capital, and labor asinputs. The article also analyzes what drives productiveefficiency, using the institutional framework, macroeconomicstability, market quality, and urbanization as possibleexplanatory factors. Urbanization turns out to be animportant determinant, with the rule of law, inflation rate,and market quality also affecting productive efficiency.