Are countries catching-up with the world technological frontier?

Abstract

This empirical analysis seeks to study the effect that institutional and geographical variables have on the economic growth of countries and in the catch-up process of the less developed with the technological frontier. Three institutional variables from Transparency International, The Heritage Foundation and Freedom House will be used. Adding two geographic variables: latitude and access to the coast. The results of the regression (robust and significant) verify that higher quality institutions, a stronger defense of political rights and civil liberties, latitudes far from the equator and access to the coast have positive effects on economic gro. In addition, through the estimation of a stochastic production frontier function, the importance of certain institutional and geographical variables as determinants of efficiency is demonstrated. Finally, an efficiency ranking is drawn up and it is calculated whether there has been a catch-up effect of less developed countries.