MEASURING THE EFFICIENCY OF ICT INDUSTRY: A STOCHASTIC FRONTIER BASED APPROACH

The ICT industry has been attempting to reshape the economies and speeds up development. To comprehend the progressions in the ICT business, we empirically study the production frontier trajectory of the ICT industry. We gauge the efficiency levels of the ICTs in China and the United States (US) utilizing stochastic frontier analysis and meta frontier approach. We found that the US is performing better compare with Chinese ICTs. However, the efficiency gap between the two countries is not very elevated. The Chinese ICTs may surpass the US ICTs by strengthening the national ICT ecosystem to provide more innovation opportunities.