Efficiency Evaluation of Knowledge Economics by Using Mathematical Programming Model (Case Study: Iran and a Few Selected Countries)

Abstract

In this paper, we have evaluated the efficieny of selected countries in the field of knowledge economics by using mathematical programming model. Currently, for efficiency evaluation two methods are being used: 1) Parametric method 2) Nonparametric method. In this paper, we are using the Nonparametric method that is based on mathematical programming model to categorize Iran and selected countries according to knowledge economics efficiency. The main advantage of data development analysis in comparison with other methods (for efficiency evaluation) is its evaluating units that have several inputs and outputs. In this paper, according to output and input during 2005, we evaluated the efficiency of knowledge economics according to two assumptions constant return to scale and diminishing return to scale. The resoult of this research shows that according to the first assumption; Turkey, Bahrain, Jordan, Syria and Kuwait have the most efficiency in comparison with Azarbaijan, Iran, Kazakhstan, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Tajikistan and United Arab Emirates. and the efficiency average based on this assumption is 72.9 percent. According to the second assumption; Azarbaijan and Uzbakestan join to the efficient countries and their efficiency average base on this assumption is %75. Finally, according to the resoults of this research (if we consider Turkey as a pattern), efficient countries must increase their efficiency by following Turkey’s performance.