Relative National Efficiency and Country Size: Evidence for Developing Countries

14 Pages Posted: 15 Apr 2003

See all articles by Chris Milner

Chris Milner

University of Nottingham - School of Economics

Tom G. Weyman-Jones

Loughborough University - Department of Economics

Abstract

The paper investigates the impact of country size on aggregate national efficiency, using a nonparametric programming methodology to measure output distance functions and relative national efficiency for a group of 85 developing countries over the period 1980-89. Tobit regression models are estimated in order to identify the influence of national and policy characteristics on intercountry differences in relative efficiency levels. The results indicate that there is a strong positive developmental-efficiency relationship and evidence of a positive impact of trade policy openness on aggregate efficiency. There is also some evidence of a country size constraint on efficiency when other influences are controlled for.

Suggested Citation

Milner, Chris and Weyman-Jones, Tom G., Relative National Efficiency and Country Size: Evidence for Developing Countries. Review of Development Economics, Vol. 7, pp. 1-14, 2003. Available at SSRN: https://ssrn.com/abstract=377123

Chris Milner (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Tom G. Weyman-Jones

Loughborough University - Department of Economics ( email )

York House
Loughborough LE11 3TU
Great Britain

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