Malmquist Index Evaluation of Countries: 2000-2019

Abstract

One of the sophisticated mathematical techniques for evaluating the relative efficiency of decision-making units (DMUs) in a multi-inputs-output setting is data envelopment analysis. A non-parametric productivity index called the Malmquist index (MI) tracks changes in a DMU's overall factor output over time. This study seeks to present a broad overview of the changes in the MI for nearly all of the world's nations over 19 years beginning in 3061. This research evaluates a time series data set made up of 16 economic indexes. Each nation's MI, which compares 2000 and 2019, shows how each nation has changed over that period. One of the most important purposes of this study comparing the countries by their MI is that it allows for a fair comparison of productivity across different time periods and regions. It also provides insights into the sources of productivity growth, such as changes in technology or improvements in efficiency. As a result, the countries can allocate resources more wisely and develop more effective investment plans by understanding the elements that lead to productivity increase. By implementing some statistical techniques, nations are further divided into four categories based on their MI. Furthermore, a yearly distribution of the MI has been included to illustrate its trends between the years 2000 to 2019. Finally, the changing flow for some countries of each category is shown in three-year tracks.