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Eliminating congestion in China’s papermaking and paper products industry: From both the perspective of increasing and decreasing inputs

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  • Xian-tong Ren

    (Shandong University)

  • Guo-liang Yang

    (Chinese Academy of Sciences
    University of Chinese Academy of Sciences)

Abstract

Congestion is a well-known economic phenomenon in which excessive inputs lead to a decrease in the maximum possible outputs. This study analyzes the relationship between congestion and overinvestment using a data envelopment analysis framework to reveal that some congestion can be eliminated by increasing inputs. The proposed approach classifies congestion into two categories, relative and absolute congestion, depending on the possibility of eliminating congestion by increasing inputs. Corresponding methods for identifying and measuring congestion are proposed and employed for empirical analyses examining China’s papermaking and paper products industry. We find that most congestion in 2013–2016 is in the relative congestion and could be eliminated by increasing inputs. The primary causes of congestion are identified based on our analysis and corresponding policy suggestions are proposed for eliminating congestion.

Suggested Citation

  • Xian-tong Ren & Guo-liang Yang, 2024. "Eliminating congestion in China’s papermaking and paper products industry: From both the perspective of increasing and decreasing inputs," Journal of Productivity Analysis, Springer, vol. 61(1), pages 63-82, February.
    • Handle: RePEc:kap:jproda:v:61:y:2024:i:1:d:10.1007_s11123-023-00675-2
    DOI: 10.1007/s11123-023-00675-2
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    References listed on IDEAS

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