Productive efficiency differences among Chinese cities: a stochastic frontier approach

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Abstract

This paper treats the empirical issue related to the urban productive efficiency. First, we construct a model incorporating urban inefficiency term and estimate a stochastic frontier production function at urban level. Next, we compare technical efficiency across Chinese cities during 1997-2007 by using estimated results. The urban technical inefficiency effect is found to be significant in many cities. Then, in the way of constructing the specification of the technical inefficiency in terms of various capital explanatory variables, we analyze the determinants of technical inefficiency of individual cities, and explore how the urban technical inefficiency is influenced by capital density, FDI, the domestic investment, while the impact of technical inefficiency on capital variables is investigated.From the empirical results, FDI is able to reduce effectively the technical inefficiency. Capital intensive industry would be the engine of economic growth in the future.

Journal

  • Okayama economics review

    Okayama economics review 43(2), 85-100, 2011-09

    岡山大学経済学会

Codes

  • NII Article ID (NAID)
    40018962706
  • NII NACSIS-CAT ID (NCID)
    AN00032897
  • Text Lang
    ENG
  • Article Type
    journal article
  • Journal Type
    大学紀要
  • ISSN
    03863069
  • NDL Article ID
    11219870
  • NDL Source Classification
    ZD11(経済--経済学)
  • NDL Call No.
    Z3-940
  • Data Source
    NDL  IR 
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