STOCHASTIC FRONTIER ANALYSIS OF EFFICIENCY HETEROGENEITY: GOVERNANCE, SUSTAINABILITY AND ICT IN GLOBAL PRODUCTION

This study explores the efficiency dynamics of 180 countries over two decades, utilizing a benchmark model to generate efficiency scores that reveal substantial heterogeneity in performance. The findings highlight governance quality, sustainability initiatives, and the adoption of ICT are critical in driving efficiency variations across nations. Comparative statics further demonstrate that while improvements in economic and policy conditions lead to higher overall efficiency, they also exacerbate the heterogeneity in efficiency outcomes. These results suggest that a comprehensive approach is required for enhancing national performance, as the heterogeneous effects of governance, sustainability, and technology adoption present both challenges and opportunities for policymakers striving to optimize efficiency in diverse contexts.