TITLE:
Economic Growth Efficiency and Productivity Constrained by Government Debts
AUTHORS:
Jianxin Wu, Jingjing Qian
KEYWORDS:
Economic Growth Efficiency, Economic Total Factor Productivity, SBM Method, GML Index
JOURNAL NAME:
Modern Economy,
Vol.9 No.7,
July
31,
2018
ABSTRACT: This paper analyzes the panel data of 60 countries
during the period 1990-2014. It
employs non-radial and non-angled slack-based measure (SBM) method to count the
economic growth efficiency and inefficiency sources under government debt
constraints. The results show that traditional efficiency is usually higher
than economic growth efficiency, and the latter can better reflect real economic
situation. In addition, debt inefficiency is the main cause of declining
economic growth efficiency in all countries, and it has the greatest impact on
developing countries. Meanwhile, this paper also adopts the global reference
Global-Malmquist-Luenberger (GML) index to
measure total factor productivity (TFP) and further decomposes it into technological changes and efficiency
changes. It is found that technological progress and efficiency improvement are
the main driving forces for enhancing total factor productivity.