Dr. Nordin Haji Mohamad1 and Fatimah Binti Said
In this study, a mathematical programming based technique in productivity management, known as data envelopment analysis, DEA is used to estimate how well the nations of the Organization of the Islamic Cooperation, OIC utilize their resources. A high growth rate (as indicated by the change in gross domestic product), a low rate of inflation, a low rate of unemployment and a favorable trade balance are four main targets or objectives of a nation’s macroeconomic policy makers. Based on selected macroeconomic input and output indicators, we apply three versions of an output-oriented DEA model under the assumption of variable returns to scale to assess the relative macroeconomic performance of 54 member countries for the period 2003-2007. The three versions produced consistent results. Three fuel-exporting countries and four least-developed countries top the performance list with Iran and Yemen at the bottom. Of a subset of 33 fuel-exporting and medium-developed countries, nine (seven and two respectively) top the list. The results were analyzed to identify the possible merits of efficiency and sources of inefficiency.
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