What drives national efficiency in sub-Saharan Africa

In this paper, we use stochastic frontier analysis to examine whether differences in the transfer and absorption of technology help to explain cross-country differences in national efficiency levels in sub-Saharan Africa over the period 1970–2010. We find that trade policy on openness, machinery imp...

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Bibliographic Details
Published in:Economic modelling 2015-01, Vol.44, p.171-179
Main Authors: Danquah, Michael, Ouattara, Bazoumana
Format: Article
Language:English
Subjects:
Africa
Difference
Effects
Efficiency
Human capital
Imports
Machinery
National efficiency
Stochastic frontier model
Stochastic models
Studies
Sub-Saharan Africa
Technology adoption
Technology transfer
Trade policy
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Summary:In this paper, we use stochastic frontier analysis to examine whether differences in the transfer and absorption of technology help to explain cross-country differences in national efficiency levels in sub-Saharan Africa over the period 1970–2010. We find that trade policy on openness, machinery imports, stock of R&D, landlockedness and quality of institutions play a significant and quantitatively important role in explaining the differences in efficiency scores in SSA. Human capital, however, has an insignificant effect on efficiency. •We explain cross-country differences in national efficiency levels in SSA.•Stochastic frontier is used to examine robust determinants of national efficiency.•Openness, machinery imports, stock of R&D and institutions reduce inefficiency.•Landlocked countries are more technically inefficient relative to coastal countries.•Human capital has no discerning significant effect on inefficiency.
ISSN:0264-9993
1873-6122
DOI:10.1016/j.econmod.2014.10.019