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Corresponding Author:
Talent Zwane, School of Economics, University of Johannesburg, South Africa

Coauthors:
Mduduzi Biyase, University of Johannesburg, School of Economics, South Africa
Mokgadi Maleka, University of Johannesburg, School of Economics, South Africa
Abelwe Maluleka, University of Johannesburg, Department of Education, South Africa

Technical Efficiency and Economic Growth in the SADC Region

Volume 73 - Issue 2, May 2020
(pp. 307-324)
JEL classification: F43, O24
Keywords: SADC, Economic Growth, Technical Efficiency

Abstract

The aim of this study is to investigate the determinants of technical efficiency in the SADC countries, over the period 1985 to 2014. A stochastic frontier analysis based on the Cobb-Douglas production functional model and various datasets (Penn World Tables and the World Development Indicators) are applied to estimate the technical efficiency of output among SADC countries. The results of stochastic frontier production approach present a positive and significant impact of labour, capital and human capital on economic growth, consistent with many studies in this field. The result of the technical inefficient model shows that government expenditure presents a negative and statistically significant estimates on technical inefficiency, while trade openness is found to have a negative but insignificant effect on technical inefficiency.  The study recommends that investing in human capital, labour, capital  and sources of technical efficiency should continue to be a major focus of enhancing its pro‐growth efforts in the SADC region.


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Institute for International Economics
of the Genoa Chamber of Commerce


Istituto di Economia Internazionale
Camera di Commercio di Genova
Via Garibaldi, 4 (III piano) - 16124 Genova (Italy)
www.ge.camcom.gov.it