Technical efficiencies and technical change gaps in Africa: application of DEA on African sectors input-output frameworks

Samson Gebrerufael

International Journal of Information and Decision Sciences, 2022, vol. 14, issue 2, 164-203

Abstract: This paper presents the African sectors' technical efficiencies and the technical change gaps. The non-parametric data envelopment analysis (DEA) is employed using the standard input-oriented BCC model. The technical coefficients of 25 sectors are examined using the IO tables of 2005 and 2013 taken from the Eora MRIO database (2013). In 2005 and 2013, the benchmark sector is found to be 'the financial intermediation and business activities sector'. The actual technical efficiency changes are observed between 2005 and 2013 as the technical coefficients of 2013 are found to be relatively smaller than that of 2005. However, they are found to be lower than the potential technical coefficients and therefore lost input savings. Simply, the average potential input savings in 2005 had the sectors employed the 2013's lowest technical coefficients is found to be 93.9%. Hence, the African sectors have been performing 'weak' in avoiding the wastage of inputs.

Keywords: technical efficiency; mix-inefficiency; actual technical change; potential technical change; technical change gap; TCG; BCC model; data envelopment analysis; DEA; Africa. (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijidsc:v:14:y:2022:i:2:p:164-203

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