Competitiveness and production efficiency across OECD countries
Purpose: The purpose of this paper was to measure the efficiency of resource utilization across OECD countries aiming to verify that higher levels of competitiveness enhance the production capacity – the maximum possible output of an economy in a given period with the available resources. Design/methodology/approach: The author used a two-stage procedure to first estimate the cross-sectional efficiency scores of 18 OECD economies by data envelopment analysis, and then to assess the impact of contextual variables on efficiency running regressions in the second-stage analysis. In particular, in the second stage, the author examined the effects of competitiveness on the production efficiency of the countries, while controlling for other independent variables. Findings: The results confirmed that the higher the level of competitiveness, innovation and sophistication factors predominantly, the higher the level of productive efficiency of the countries analyzed. Originality/value: The paper is novel because it opens the black box of the aggregate process of production of the conversion of resources into a national product. From the social point of view, it is relevant to know if a country could produce more output with the same resources, such as labor and capital and, therefore, could increase per capita income and social welfare.
Year of publication: |
2019
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Authors: | Salas-Velasco, Manuel |
Published in: |
Competitiveness Review: An International Business Journal. - Emerald, ISSN 1059-5422, ZDB-ID 2070009-X. - Vol. 29.2019, 2 (18.03.), p. 160-180
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Publisher: |
Emerald |
Saved in:
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