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

Mallick, Sushanta, Matousek, Roman, 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. (doi:10.1016/j.econlet.2016.06.019)

Abstract

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.

Item Type: Article
DOI/Identification number: 10.1016/j.econlet.2016.06.019
Uncontrolled keywords: Financial development; Technological change; Technological catch-up; Productive inefficiencies; Robust directional distance functions
Subjects: H Social Sciences > HG Finance
Divisions: Faculties > Social Sciences > Kent Business School
Depositing User: Roman Matousek
Date Deposited: 23 Jun 2016 21:19 UTC
Last Modified: 29 May 2019 17:32 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/56129 (The current URI for this page, for reference purposes)
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