Economic Efficiency and Growth: Evidence from Brazil, China, and India

Nader Nazmi and Julio E. Revilla

No RP2008-86, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We compare economic efficiencies in Brazil, India, and China, where economic efficiency measures the gap between potential and actual output for a given input combination and technological factor. We use stochastic production frontier models to measure the contributions of factors of production and technology to growth and estimate non-positive error terms that capture production inefficiencies in each country. The results suggest that China and India had relatively inefficient production in the early 1980s but have since improved production efficiency substantially.

Keywords: Economic development; International trade; Production (Economic theory); Productivity; Technology (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-cwa, nep-dev and nep-eff
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Citations: View citations in EconPapers (3)

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