Technical Efficiency and Economic Growth in the SADC Region

Talent Zwane, Mduduzi Biyase, Mokgadi Maleka and Abelwe Maluleka
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Talent Zwane: University of Johannesburg, School of Economics, South Africa
Mokgadi Maleka: University of Johannesburg, School of Economics, South Africa
Abelwe Maluleka: University of Johannesburg, Department of Education, South Africa

Economia Internazionale / International Economics, 2020, vol. 73, issue 2, 307-324

Abstract: The aim of this study is to investigate the determinants of technical efficiency in the SADC countries, over the period 1985 to 2014. A stochastic frontier analysis based on the Cobb-Douglas production functional model and various datasets (Penn World Tables and the World Development Indicators) are applied to estimate the technical efficiency of output among SADC countries. The results of stochastic frontier production approach present a positive and significant impact of labour, capital and human capital on economic growth, consistent with many studies in this field. The result of the technical inefficient model shows that government expenditure presents a negative and statistically significant estimates on technical inefficiency, while trade openness is found to have a negative but insignificant effect on technical inefficiency. The study recommends that investing in human capital, labour, capital and sources of technical efficiency should continue to be a major focus of enhancing its pro‐growth efforts in the SADC region. Efficienza tecnica e crescita economica nella regione SADC Lo scopo di questo studio è analizzare le determinanti dell’efficienza tecnica nei paesi SADC nel periodo 1985-2014. Vengono utilizzati un’analisi stocastica basata sul modello funzionale di produzione Cobb-Douglas e diversi database (Penn World Table e gli World Development Indicators) al fine di stimare l’efficienza tecnica della produzione tra i paesi dell’area SADC. I risultati dell’approccio stocastico di frontiera evidenzia un’influenza significativamente positiva del lavoro, del capitale e del capitale umano sulla crescita economica, il che è coerente con molti studi in questo campo. Il risultato del modello di inefficienza tecnica dimostra che la spesa pubblica presenta delle stime negative e statisticamente significative sull’efficienza tecnica, mentre l’apertura commerciale ha un effetto negativo ma insignificante sull’efficienza tecnica. Questo studio raccomanda che gli investimenti in capitale umano, lavoro, capitale ed efficienza tecnica continuino ad essere uno dei principali obiettivi per incrementare la crescita nei paesi SADC.

Keywords: SADC; Economic Growth; Technical Efficiency (search for similar items in EconPapers)
JEL-codes: F43 O24 (search for similar items in EconPapers)
Date: 2020
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