A Productivity Growth Accounting Approach to the Ranking of Developing and Developed Nations

11 Pages Posted: 10 Aug 2014 Last revised: 19 Dec 2018

See all articles by Raymond L. Raab

Raymond L. Raab

University of Minnesota, Duluth - Labovitz School of Business and Economics (LSBE)

Ehsan H. Feroz

University of Washington, Milgard School of Business-Accounting ; University of Illinois at Urbana-Champaign; Government of the United States of America - US GAO Advisory Council; University of Minnesota, Labovitz School of Business-Department of Accounting; University of Minnesota, Carlson School of Management-Department of Accounting; American Accounting Association

Date Written: 2010

Abstract

Productivity growth accounting studies generally focus on productivity growth or decline in more developed countries such as the Organization of Economic Cooperation and Development (OECD) members. In this paper, we develop a generalized efficiency index for a much larger set of 57 national governments (NGs), both developing and developed, by employing four components of gross national product and five resource-availability indicators. Using a Data Envelopment Analysis (DEA) linear-programming approach, we maximize the components of Gross National Product (GNP), subject to minimizing specific resource-input measures. If used with appropriate precautions, the DEA-based comparative production-efficiency measures developed here can be used by individual NGs and international organizations like the World Bank and the International Monetary Fund to make equitable and sustainable lending-allocation decisions in the public and private sectors of the increasingly interdependent global economy.

ERRATUM: Section 2 ‘DEA National Government (NG) Model’ draws heavily from Ehsan H. Feroz, Raymond Raab and Stephen Haag, “An Income Efficiency Model Approach to Economic Consequences of the OSHA Cotton Dust Regulations” Australian Journal of Management Volume 26, Number 1, June 2001, pp. 86-89. While the context here is different (NG), the basic parameters and expositions of the models are the same. Since this problem arose mainly because of the authors’ failure to submit corrections to the proof in a timely fashion, the authors sincerely regret any confusion or misperception created by this unintended overlap between the two papers. Remaining errors are the responsibility of the authors.

Keywords: Growth Theory, Political Economy, Data Envelopment Analysis (DEA), Productivity, Development, BRICs, LDC, Third World

JEL Classification: C44, C67, D57, D61, E23, F02, G18, H11, K23, L67, M11, M41, O57, P16, G30, H10, L30, L31, L51

Suggested Citation

Raab, Raymond L. and Feroz, Ehsan H., A Productivity Growth Accounting Approach to the Ranking of Developing and Developed Nations (2010). International Journal of Accounting, Vol. 42, 2007, pp. 396-415. Available at SSRN: https://ssrn.com/abstract=2477626

Raymond L. Raab

University of Minnesota, Duluth - Labovitz School of Business and Economics (LSBE) ( email )

412 Library Drive
Duluth, MN 55812-3029
United States

Ehsan H. Feroz (Contact Author)

University of Washington, Milgard School of Business-Accounting ( email )

1900 Commerce Street, Campus Box 358420
Tacoma, WA 98402-3100
United States
(253) 692 4728 (Phone)
253 692 4523 (Fax)

HOME PAGE: http://www.tacoma.washington.edu/business

University of Illinois at Urbana-Champaign ( email )

515 East Gregory Drive# 2307
Champaign, IL 61820
United States

Government of the United States of America - US GAO Advisory Council ( email )

441 G Street NW
Washington, DC 20548-0001
United States

University of Minnesota, Labovitz School of Business-Department of Accounting ( email )

10 University Drive
Labovitz School of Business
Duluth, MN 55812
United States
218-726-6988 (Phone)
218-726-8510 (Fax)

University of Minnesota, Carlson School of Management-Department of Accounting ( email )

420 Delaware St. SE
Minneapolis, MN 55455
United States

American Accounting Association ( email )

5717 Bessie Drive
Sarasota, FL 34233-2399
United States

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