Production Losses Due to Technical Inefficiency: A Panel Data Analysis on the Case of BRICS-T Countries

Nadide Yiğiteli

Article Details

Production Losses Due to Technical Inefficiency: A Panel Data Analysis on the Case of BRICS-T Countries

Authors:

Nadide Yiğiteli

Publisher:

Istanbul University

Main Topics:

Ekonometri (Diğer)

Journal:

EKOIST Journal of Econometrics and Statistics Issue 38, pp.53-73

Document Type:

Article

Publication Date:

7/2023

Document Language:

Turkish

Document ID (Org No.):

2001296285

pISSN:

2651-396X

Keywords:

Abstract:

 This study aims to estimate the efficiency of using the available resources and technology of BRICS-T countries. In this context, the production limit is modelled using stochastic frontier analysis SFA within the scope of a panel data set consisting of six countries from 1990-2019. The production frontier and technical inefficiency determinants are estimated by a one-stage method. In addition, the technical inefficiency in the model and the variances related to technical inefficiency and statistical error are defined as a function of the variables of countries population and export-import ratios. The study has determined these variables to have no significant impact on technical inefficiency. The results show the average level of technical efficiency during the analysis period to be 91 and countries to have lost 9 of their potential output. Turkey was determined as the country to rank first and Russia to rank last during the analyzed period in terms of the average coefficient of technical efficiency. Turkeys production loss due to inefficiency was 3.4, while Russias was 23.3. On the other hand, technical efficiency decreased an average of 0.064 annually during the analysis period. This finding indicates countries adaptation to existing technologies to gradually decrease and production losses due to inefficiency to increase. The production losses due to inefficiency and the efficiency decreases observed during the analysis period reveal an important opportunity for BRICS-T countries to use their potential more effectively in terms of sustainable economic growth.

 This study aims to estimate the efficiency of using the available resources and technology of BRICS-T countries. In this context, the production limit is modelled using stochastic frontier analysis SFA within the scope of a panel data set consisting of six countries from 1990-2019. The production frontier and technical inefficiency determinants are estimated by a one-stage method. In addition, the technical inefficiency in the model and the variances related to technical inefficiency and statistical error are defined as a function of the variables of countries population and export-import ratios. The study has determined these variables to have no significant impact on technical inefficiency. The results show the average level of technical efficiency during the analysis period to be 91 and countries to have lost 9 of their potential output. Turkey was determined as the country to rank first and Russia to rank last during the analyzed period in terms of the average coefficient of technical efficiency. Turkeys production loss due to inefficiency was 3.4, while Russias was 23.3. On the other hand, technical efficiency decreased an average of 0.064 annually during the analysis period. This finding indicates countries adaptation to existing technologies to gradually decrease and production losses due to inefficiency to increase. The production losses due to inefficiency and the efficiency decreases observed during the analysis period reveal an important opportunity for BRICS-T countries to use their potential more effectively in terms of sustainable economic growth.

 This study aims to estimate the efficiency of using the available resources and technology of BRICS-T countries. In this context, the production limit is modelled using stochastic frontier analysis SFA within the scope of a panel data set consisting of six countries from 1990-2019. The production frontier and technical inefficiency determinants are estimated by a one-stage method. In addition, the technical inefficiency in the model and the variances related to technical inefficiency and statistical error are defined as a function of the variables of countries population and export-import ratios. The study has determined these variables to have no significant impact on technical inefficiency. The results show the average level of technical efficiency during the analysis period to be 91 and countries to have lost 9 of their potential output. Turkey was determined as the country to rank first and Russia to rank last during the analyzed period in terms of the average coefficient of technical efficiency. Turkeys production loss due to inefficiency was 3.4, while Russias was 23.3. On the other hand, technical efficiency decreased an average of 0.064 annually during the analysis period. This finding indicates countries adaptation to existing technologies to gradually decrease and production losses due to inefficiency to increase. The production losses due to inefficiency and the efficiency decreases observed during the analysis period reveal an important opportunity for BRICS-T countries to use their potential more effectively in terms of sustainable economic growth.

 Çalışmada, BRICS-T ülkelerinin mevcut kaynaklarını ve teknolojiyi kullanma etkinliğinin tahmin edilmesi amaçlanmaktadır. Bu kapsamda, 1990-2019 dönemi ve 6 ülkeden oluşan bir panel veri seti ile stokastik sınır analizi SSA kullanılarak üretim sınırı modellenmektedir. Üretim sınırı ve teknik etkinsizlik belirleyicilerinin tahmini için tek aşamalı bir yöntem kullanılmaktadır. Ayrıca, modelde teknik etkinsizlik ile teknik etkinsizliğe ve istatistiki hata terimine ilişkin varyanslar, ülke nüfusu ve ihracatın ithalatı karşılama oranı değişkenlerinin bir fonksiyonu olarak tanımlanmaktadır. Çalışmada, söz konusu değişkenlerin, teknik etkinsizlik üzerinde anlamlı bir etkisi olmadığı tespit edilmektedir. Bulgular, analiz döneminde teknik etkinlik düzeyinin ortalama 91 olduğunu ve ülkelerin bu dönemde potansiyel çıktılarının 9unu kaybettiğini göstermektedir. Analiz döneminde ortalama teknik etkinlik katsayısı açısından ilk sırada yer alan ülke Türkiye, son sırada yer alan ülke ise Rusya olarak tespit edilmiştir. Türkiyenin etkinsizlik kaynaklı üretim kaybı 3,4 iken Rusyanın 23,3tür. Ayrıca Rusya analiz dönemi süresince etkinliğini artıran tek ülke olarak tespit edilmiştir. Diğer yandan analiz döneminde, yıllık ortalama olarak teknik etkinlik 0,064 azalış göstermiştir. Bu bulgu, ülkelerin mevcut teknolojilere uyumlarının giderek azaldığına ve etkinsizlik kaynaklı üretim kayıplarının arttığına işaret etmektedir. Gerek etkinsizlik kaynaklı üretim kayıpları gerekse analiz döneminde gözlemlenen etkinlik düşüşleri, sürdürülebilir ekonomik büyüme açısından BRICS-T ülkelerinin potansiyellerini daha etkin kullanmalarının önemli bir fırsat alanı olduğunu göstermektedir.

Article Details

Production Losses Due to Technical Inefficiency: A Panel Data Analysis on the Case of BRICS-T Countries

Authors:

Nadide Yiğiteli

Publisher:

Istanbul University

Main Topics:

Ekonometri (Diğer)

Journal:

EKOIST Journal of Econometrics and Statistics Issue 38, pp.53-73

Document Type:

Article

Publication Date:

7/2023

Document Language:

Turkish

Document ID (Org No.):

2001296285

pISSN:

2651-396X

Efficiency

Production

GrowthEtkinlik

Üretim

Büyüme

Issues

Article Details

Production Losses Due to Technical Inefficiency: A Panel Data Analysis on the Case of BRICS-T Countries

Authors: Nadide Yiğiteli

Publisher: Istanbul University

Main Topics: Ekonometri (Diğer)

Journal: EKOIST Journal of Econometrics and Statistics Issue 38, pp.53-73

Document Type: Article

Publication Date: 7/2023

Document Language: Turkish

Document ID (Org No.): 2001296285

pISSN: 2651-396X

Efficiency

Production

GrowthEtkinlik

Üretim

Büyüme

Issues

Authors:

Nadide Yiğiteli

Publisher:

Istanbul University

Main Topics:

Ekonometri (Diğer)

Journal:

EKOIST Journal of Econometrics and Statistics Issue 38, pp.53-73

Document Type:

Article

Publication Date:

7/2023

Document Language:

Turkish

Document ID (Org No.):

2001296285

pISSN:

2651-396X