{"title":"Impact of Economic Openness on Macro Technical Efficiency in South Asia","authors":"Hussein Al-Zyoud, Asheref Illiyan, Vasim Akram","doi":"10.1007/s11294-022-09858-3","DOIUrl":null,"url":null,"abstract":"<p>This study utilized panel data and the stochastic frontier approach based on the Cobb–Douglas production function to estimate macro-level technical efficiency and economic openness as well as to identify the determinants of technical efficiency in South Asian countries over the period 1990 to 2019. Data are from the World Development Indicators of the World Bank and the United Nations Conference on Trade and Development. The results suggest a 10% technical inefficiency in the region. In addition, they show high efficiency with more foreign direct investment and openness in South Asian countries. The country-specific technical efficiency estimation indicates that Sri Lanka is the most technically efficient country, followed by India and Pakistan, whereas Bangladesh is the least technically efficient country. Furthermore, the study provides robust evidence for the positive effect of macroeconomic openness of foreign direct investment and trade on technical efficiency. The present study provides a future perspective on the country-specific economic strategies in South Asia. In addition, the findings provide important evidence on how macroeconomic policies can affect efficiency and steady growth by examining and identifying the factors that influence technical efficiency in the region. Additionally, the differences between the factors that influence technical efficiency in different countries are discussed by comparing the findings of this study with those of previous studies that have focused on economic openness. This paper presents a view on the status of macro-level technical efficiency. Furthermore, it explores the opportunities for foreign direct investment and export-oriented policies of South Asian countries, which would benefit these nations.</p>","PeriodicalId":45656,"journal":{"name":"International Advances in Economic Research","volume":"13 1","pages":""},"PeriodicalIF":1.1000,"publicationDate":"2022-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Advances in Economic Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1007/s11294-022-09858-3","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study utilized panel data and the stochastic frontier approach based on the Cobb–Douglas production function to estimate macro-level technical efficiency and economic openness as well as to identify the determinants of technical efficiency in South Asian countries over the period 1990 to 2019. Data are from the World Development Indicators of the World Bank and the United Nations Conference on Trade and Development. The results suggest a 10% technical inefficiency in the region. In addition, they show high efficiency with more foreign direct investment and openness in South Asian countries. The country-specific technical efficiency estimation indicates that Sri Lanka is the most technically efficient country, followed by India and Pakistan, whereas Bangladesh is the least technically efficient country. Furthermore, the study provides robust evidence for the positive effect of macroeconomic openness of foreign direct investment and trade on technical efficiency. The present study provides a future perspective on the country-specific economic strategies in South Asia. In addition, the findings provide important evidence on how macroeconomic policies can affect efficiency and steady growth by examining and identifying the factors that influence technical efficiency in the region. Additionally, the differences between the factors that influence technical efficiency in different countries are discussed by comparing the findings of this study with those of previous studies that have focused on economic openness. This paper presents a view on the status of macro-level technical efficiency. Furthermore, it explores the opportunities for foreign direct investment and export-oriented policies of South Asian countries, which would benefit these nations.
期刊介绍：
International Advances in Economic Research (IAER) was established to promote the dissemination of economic and financial research within the international community. Founded in 1995 by the International Atlantic Economic Society, a need was identified to provide the latest research on today''s economic policies and tomorrow''s economic and financial conditions. Economists can no longer be concerned with professional developments only in their home country. Research by scholars in one country can easily have implications for other countries, yet often vital results are not shared. Economic restructuring in a shrinking world demands close analysis and careful interpretation. In IAER, authors from around the globe look at these issues, coming together in the cross-fertilization of multinational ideas. The journal provides economists, financial specialists, and scholars in related disciplines with much-needed opportunities to share their insights with worldwide colleagues. Policy-oriented, empirical, and theoretical research papers in all economic and financial areas are welcome, without regard to methodological preferences or school of thought. All manuscripts are submitted to a double-blind, peer review process.
In addition to formal publication of full-length articles, IAER provides an opportunity for less formal communication through its Research Notes section. A small point may not be worthy of a full-length, formal paper but is important enough to warrant dissemination to other researchers. Research in progress may be of interest to other scholars in the field. A research approach ending in negative results needs to be shared to save others similar pitfalls. Research Notes has been established to facilitate this form of communication. The section provides a means by which short manuscripts of less than 200 words can quickly appear in IAER. The review process for these shorter manu scripts is usually completed within 30 days.
Officially cited as: Int Adv Econ Res
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