corrected efficiency score correlates well with standard Growth Theory indicators. …, 2008). We propose a theory-based metric using Data Envelopment Analysis which corrects for sample bias and considers …

stage, cross country workers' efficiency is estimated using a bootstrapped DEA approach over the period of 1990-2000 for 78 … countries. In the second stage, the impact of institutions on these efficiency estimates is analyzed in a truncated bootstrapped …, bureaucratic inefficiencies, lax regulations and unfriendly business policies, tend to have a larger effect on workers efficiency …