Time: 1:00 - 2:00pm Venue: FB Room 4.04 / 4.08 (Lunch from 12:30pm in the kitchen)
Dr. Nickolaos G. TzeremesDepartment of Economics, University of Thessaly, Greece.
Dr Tzeremes is visiting SBM during 7-11 March 2016 as part of Erasmus + Staff Mobility programme.
Financial development and productive inefficiency: A robust directional distance function approach
The paper examines the effect of financial development on countries' inefficiency levels associated with technological change and technological catch-up. By applying time-dependent robust conditional nonparametric frontier to a sample of 91 economies over 1970-2011, the paper provides empirical evidence of the examined relationship. Specifically, we apply for the first time in the literature order-α hyperbolic distances in a time-dependent conditional nonparametric frontier framework examining the effect of financial development on countries' productive inefficiency levels. The results reveal that the effect of financial development on countries' productive inefficiency levels is highly nonlinear and depends on countries' income levels.