The macroeconomic determinants of cross-country efficiency in wealth maximization

A joint analysis through the SFA and GMM models

Authors

DOI:

https://doi.org/10.20525/ijrbs.v9i6.894

Keywords:

Net Wealth, Stochastic Frontier Analysis, Technical Efficiency, Generalized Methods of Moments, Principal Component Analysis

Abstract

In the arena of economic analysis, the wealth of a nation is getting more and more attention to be a better indicator to evaluate the status of an economy. This paper had studied the aggregate household wealth of different nations of the world, 106 countries, for the year 2009-2018. During these years, only two countries of the world, China and the USA have managed to increase their wealth tremendously over the last decade while others experienced a slow pace in the growth of wealth. To satisfy the query of how efficient these countries were in maximizing their wealth, a stochastic frontier approach (SFA) has been used to predict the technical efficiency dependent variable and then generalized methods of moments (GMM) and other models have been used to find out the determinants of this efficiency. The study had come up with the result that land, labor, and capital mainly contributed to the output of wealth maximization while past year level of efficiency, export, and import played the main roles in determining the wealth maximizing efficiency status of a nation. It is found that there is a negative relationship between past-year efficiency with current years and the more a country imports, the less efficient the country is while the more it exports, the more efficient the country is in maximizing wealth. 

Author Biographies

Md Harun Or Rosid, School of Management, Huazhong University of Science and Technology

Md Harun Or Rosid is currently a Doctoral Research Student in School of Management, majoring Management Science and Engineering at Huazhong University of Science and Technology, People’s Republic of China. He has completed his BBA and MBA degree from the University of Dhaka, Bangladesh. After that, he joined as a Lecturer of Accounting at Begum Rokeya University, Rangpur in 2010. Then he shifted to the University of Barishal, Bangladesh in 2015. He has about 10 years of teaching experience. During his working tenure, he had published a number of research papers in reputed national and international journals.

Zhao Xuefeng, School of Management, Huazhong University of Science and Technology

Dr Zhao Xuefeng is a Professor of Management Science and Engineering at School of Management of Huazhong University of Science and Technology, Wuhan, Hubei, China. Education: Ph.D. (Majored in Management Science and Engineering), HUST, 2002. M.E. (Majored in Materials Process Engineering), HUST, 1998. B.E. (Majored in Materials Process Engineering), HUST, 1995. Visiting Scholar, The University of Texas at Dallas, USA, 2016-Mar.-2017-Mar. Visiting Scholar, University of Georgia Technology of Institute, USA, 2007-Jan.-2008-Jan. Consulting Activities: Wuchang Shipbuilding Industry Company Ltd., China Eastern Airlines Wuhan Co., China Construction Third Engineering Bureau CO. LTD., China Railway 11 Bureau Group CO. LTD., Xiangfan 525 pump industry co., LTD., etc. Research Interests: Electronic Commerce, Project Management, Human Resource Management, etc. Grants and Contracts: Grants from the National Natural Science Foundation of China (No. 71171092), “Study on the factors influencing redemption intentions of mobile coupons and peer-recommended system based on social network” , Principal Investigator, 2012-2015. 2. Grants from the National Natural Science Foundation of China (No.70871048), “study on the Evaluation Model of Online Merchant's Reputation Based on Text-mining”, Principal Investigator, 2009-2011.

Sujan Chandra Paul, Department of Accounting and Information Systems, University of Barishal, Bangladesh

Sujan Chandra Paul is an Assistant Professor at the department of accounting and information systems, University of Barishal, Bangladesh. He is also an Associate Chertered Accountant (ACA). He has completed his BBA and MBA degree from the University of Dhaka, Bangladesh. He has published a number of articles in reputed journals. He is also an associate editor of the Barishal University Journal of Business Studies. 

Md Reza Sultanuzzaman, School of Economics and Management, Nanchang University, Nanchang, Jiangxi, China.

Dr. Md Reza Sultanuzzaman has completed his doctoral degree from the School of Economics at Huazhong University of Science and Technology, China. He was awarded his MBA degree from State University of Bangladesh, Bangladesh. In Bangladesh, he was an expert in pharmaceuticals (marketing and sales) field. Currently, he is researching in International Trade and Economic Development. He has research interest in FDI, Trade (export & import), economic development and environment economics.

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Published

2020-10-27

How to Cite

Rosid, M. H. O., Xuefeng, Z., Paul, S. C., & Sultanuzzaman, M. R. (2020). The macroeconomic determinants of cross-country efficiency in wealth maximization: A joint analysis through the SFA and GMM models. International Journal of Research in Business and Social Science (2147- 4478), 9(6), 91–107. https://doi.org/10.20525/ijrbs.v9i6.894

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Special Topics in Financial Ecosystem