Technology Absorption and National Efficiency in BRICS+ Countries

Technological innovation and absorption capacity are key drivers of productivity growth, competitiveness, and long-run economic development. This study estimates national efficiency in the BRICS+ economies (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Saudi Arabia, United Arab Emirates, and Indonesia), examines the effect of technology absorption capacity on national efficiency, and evaluates convergence with OECD countries. The generalized true random effects and fractional regression models are used to estimate national efficiency and examine the impact of absorption capacity on national efficiency. The key findings are fourfold. First, the BRICS+ economies operate below the production frontier, with an average efficiency level of 70.45%, indicating scope to increase output through more efficient resource use. Second, the average persistent and transient efficiency levels of 75.98% and 92.68%, respectively, suggest that structural inefficiencies constitute a greater constraint on long-run performance than short-term operational inefficiencies. Third, stronger technology absorption significantly improves persistent efficiency, although its effect on transient efficiency is comparatively moderate. Fourth, the results indicate slow club convergence between the BRICS+ and OECD economies, suggesting that efficiency gaps are narrowing only gradually. These findings highlight the importance of strengthening institutional quality, modernising infrastructure, and expanding investment in health, education, skills development, and research and development to improve long-run national efficiency and narrow the performance gap with advanced economies. JEL Classification F210, O33, O47