Program and Development Research

Program and Development Research

Assessing the Relative Performance of International Trade and Human Freedom Index

Document Type : Original Article

Authors
1 Department of Economics, Shi.C., Islamic Azad University, Shiraz, Iran.
2 Department of Economics, Shi.C., Islamic Azad University, Shiraz, Iran. (Corresponding author)
Abstract
Measuring relative international trade performance and the relationship between its components and economic development has an important position in economic studies. The aim of the research is to measure trade relative performance and examine its components with the Human Freedom Index (as an important index in economic development) in order to determine position of countries and relationship of variables. The study method is output oriented Data Envelopment Analysis with constant returns to scale in 2013-2020. For this purpose, by using models based on Slacks Based Measure and Super Efficiency in order to measure and rank Trade Efficiency and also Malmquist Index to measure the Trade Total Factor Productivity Growth, the relationships of trade performance indicators based on the Human Freedom Index of 32 selected countries have been studied. According to the results, Italy has the highest trade efficiency and Australia is at the top of the Trade Total Factor Productivity Growth. Then, by creating categories and examining the matrix of sub indices of trade performance and the Human Freedom Index, a positive and significant correlation between the Human Freedom Index and Trade Efficiency and a weak and insignificant correlation between the Human Freedom Index and Trade Total Factor Productivity Growth can be observed.
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