Original scientific paper
https://doi.org/10.1080/1331677X.2019.1685397
Stochastic analysis of the economic growth of OECD countries
Hanns de la Fuente-Mella
Ana María Vallina-Hernandez
Rodrigo Fuentes-Solís
Abstract
This study examined the determinants of economic development
for the 34 member countries of the Organization for Economic
Cooperation and Development (OECD) and analysed efficient uses
of economic development resource endowments. The methodology
included econometric panel data modelling and stochastic
frontier analysis, using the Cobb-Douglas production function and
trans-logarithmic functional form to analyse data from 2003 to
2012. Economic growth was measured by the gross domestic
product (GDP) of each economy. As a result, the determinants of
economic development were presented and a ranking of efficiency
was obtained for all OECD economies throughout the
period of analysis. It was concluded that countries with higher
economic growth levels have higher efficiency rankings. For
example, countries with higher efficiency rankings were
Luxembourg and the U.S.; Chile and Mexico were ranked lower.
Finally, there was a positive relationship between growth levels
and technical efficiency levels.
Keywords
Applied economics; stochastic frontier analysis; economic growth
Hrčak ID:
254591
URI
Publication date:
9.2.2021.
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