Theoretical and Applied Economics
No. 4 / 2019 (621), Winter
Exploring the role of institutions in cross country Malmquist productivity analysis: A two-stage double bootstrap DEA approach
Karachi University Business School, University of Karachi, Pakistan
Qazi Masood AHMED
Institute of Business Administration, Karachi, Pakistan
Abstract. This paper explore the role of institutions to enhance the productivity growth across countries using a two stage Double Bootstrap Data Envelopment Analysis (DEA). The productivity growth is calculated on the basis of Malmquist productivity index. It also explores the sources of productivity growth and the influence of different types of institutions (Siddiqui and Ahmed, 2013a) on them. In the first stage, productivity growth and its decompositions a) technological change and b) efficiency change are estimated for a period of 1990-2000 for 78 countries. In the second stage, the impact of institutions on these estimates is analyzed through a bootstrapped regression. Findings suggest that institutions played a strong and positive role in enhancing cross country productivity mainly through promoting technological change but the evidences of institutions influencing efficiency change are not found. This study also shows that institutions that curb corruption, bureaucratic inefficiencies, lax regulations and unfriendly business policies, tend to have a larger effect on productivity growth than other two indices that curb political rents and that reduces transactional risks. However when they are aggregated, their impact is more pronounced than their combined individual impacts.
Contents
Expanding the Eurozone. The stage of economic convergence for Bulgaria, Czech Republic, Croatia, Hungary, Poland and Romania
Business R&D investments in the EU: Main dynamics and economic effects
Volatility experience of major world stock markets
Unemployment hysteresis analysis for OECD countries
Culture as a driving factor for foreign direct investments in the Western Development Region of Romania
A Deep Neural Network (DNN) based classification model in application to loan default prediction
The new Keynesian Phillips Curve. Implications. Strengths and weaknesses
Corporate ownership structure and performance: An enquiry into India
Turkey’s macroeconomic policy challenges in the aftermath of the 2018 crisis: A sectoral financial balances analysis
Main aspects on the nature of dynamic models
An analyses model of the Romanian privately managed pension system
Dynamic models used in analysis capital and population
Poverty rate determinants in the Central and Eastern Europe member states
Wagner versus Keynesian Hypothesis: Role of aggregate and disaggregate expenditure in Pakistan
GARCH based VaR estimation: An empirical evidence from BRICS stock markets
Does FDI substitute exports of home country? A case of US FDI in select Asian economies
Exploring the role of institutions in cross country Malmquist productivity analysis: A two-stage double bootstrap DEA approach
Does the Mundell-Fleming Model apply to Poland?
The validity of Okun’s Law: Evidences from Indian economy