Financial development and productive inefficiency: a robust conditional directional distance function approach

This paper examines whether the level of financial development helps lower countries’ inefficiency using time-dependent robust conditional directional distance functions in a sample of 91 countries over 1970–2011. The overall results reveal that the effect of financial development on countries’ prod...

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Main Authors: Mallick, Sushanta, Matousek, Roman, Tzeremes, Nickolaos G.
Format: Article
Published: Elsevier 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/51663/
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author Mallick, Sushanta
Matousek, Roman
Tzeremes, Nickolaos G.
author_facet Mallick, Sushanta
Matousek, Roman
Tzeremes, Nickolaos G.
author_sort Mallick, Sushanta
building Nottingham Research Data Repository
collection Online Access
description This paper examines whether the level of financial development helps lower countries’ inefficiency using time-dependent robust conditional directional distance functions in a sample of 91 countries over 1970–2011. The overall results reveal that the effect of financial development on countries’ productive inefficiency is highly nonlinear, and depends on countries’ income levels, suggesting that higher levels of financial development are enhancing more countries’ catching-up ability rather than their technological change.
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publishDate 2016
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spelling nottingham-516632020-05-04T20:01:46Z https://eprints.nottingham.ac.uk/51663/ Financial development and productive inefficiency: a robust conditional directional distance function approach Mallick, Sushanta Matousek, Roman Tzeremes, Nickolaos G. This paper examines whether the level of financial development helps lower countries’ inefficiency using time-dependent robust conditional directional distance functions in a sample of 91 countries over 1970–2011. The overall results reveal that the effect of financial development on countries’ productive inefficiency is highly nonlinear, and depends on countries’ income levels, suggesting that higher levels of financial development are enhancing more countries’ catching-up ability rather than their technological change. Elsevier 2016-08 Article PeerReviewed Mallick, Sushanta, Matousek, Roman and Tzeremes, Nickolaos G. (2016) Financial development and productive inefficiency: a robust conditional directional distance function approach. Economics Letters, 145 . pp. 196-201. ISSN 0165-1765 Financial development; Technological change; Technological catch-up; Productive inefficiencies; Robust directional distance functions https://www.sciencedirect.com/science/article/pii/S0165176516302233?via%3Dihub doi:10.1016/j.econlet.2016.06.019 doi:10.1016/j.econlet.2016.06.019
spellingShingle Financial development; Technological change; Technological catch-up; Productive inefficiencies; Robust directional distance functions
Mallick, Sushanta
Matousek, Roman
Tzeremes, Nickolaos G.
Financial development and productive inefficiency: a robust conditional directional distance function approach
title Financial development and productive inefficiency: a robust conditional directional distance function approach
title_full Financial development and productive inefficiency: a robust conditional directional distance function approach
title_fullStr Financial development and productive inefficiency: a robust conditional directional distance function approach
title_full_unstemmed Financial development and productive inefficiency: a robust conditional directional distance function approach
title_short Financial development and productive inefficiency: a robust conditional directional distance function approach
title_sort financial development and productive inefficiency: a robust conditional directional distance function approach
topic Financial development; Technological change; Technological catch-up; Productive inefficiencies; Robust directional distance functions
url https://eprints.nottingham.ac.uk/51663/
https://eprints.nottingham.ac.uk/51663/
https://eprints.nottingham.ac.uk/51663/