Comparison of Stochastic Frontier Approaches for Estimating National Efficiency: An Application to Sub-Saharan African Countries
Michael Danquah and Bazoumana Ouattara ()
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Michael Danquah and Bazoumana Ouattara: University of Ghana, University of Manchester
Authors registered in the RePEc Author Service: Michael Danquah ()
Journal of Economic Development, 2018, vol. 43, issue 3, 119-142
In this paper, we attempt to estimate pure national (technical) efficiency for 19 SSA countries over the 1960-2010 periods. In doing this, we compare conventional stochastic frontier models for panel data with a number of recently developed models which seek to control for unobserved heterogeneity in the inefficiency component. We find that the ¡®true¡¯ random effects model that treats unobserved heterogeneity in our national dataset generates more reasonable efficiency estimates. Moreover the results confirm that most SSA countries operate far from the efficient frontier.
Keywords: National Efficiency; Productivity; Stochastic Frontier Model; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:43:y:2018:i:3:p:119-142
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