The fog of OECD and Non-OECD country efficiency:a data envelopment analysis approach

Focusing on three input variables (i.e., government efficiency, business efficiency, and infrastructure advancement) and one output variable (i.e., economic performance), we employ the Data Envelopment Analysis (DEA) technique in an attempt to make an efficiency comparison between the developed economies (i.e., OECD countries) and the less developed economies (i.e., non-OECD countries). Among the studied sample nations, Indonesia and Argentina are found to outperform other nations across all efficiency measures. Our findings also reveal a significant difference between the OECD and the non-OECD countries in terms of the scale efficiency and overall technical and scale efficiency. We recommend further studies to incorporate additional inputs/outputs (e.g., risk factor) in the DEA model and find innovative ways and means to facilitate the cross-country benchmark process.