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An Analysis on Technical Efficiency in Post-reform China

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  • Zhou, Xianbo
  • Li, Kui-Wai
  • Li, Qin

Abstract

This paper employs a fully nonparametric stochastic frontier model with time and individual effects to study technical efficiency in China's post-reform economy. The panel data cover China's thirty provinces for the period of 1985–2008. The empirical results show that the average output elasticity of labor is larger than the other two inputs of capital and human capital. Based on the specified inefficiency Tobit model, the factor analysis on technical efficiency shows that the time effects of technical efficiency in China's post-reform economy are significantly contingent on the factors. There exists significant regional differences in technical efficiency in China's economic development, and a number of policy implications can be drawn.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41034.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:41034

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Keywords: Fully nonparametric stochastic frontier Time effects and individual effects Time variant Technical efficiency Tobit model;

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Cited by:
  1. Ma, Shuzhong & Feng, Han, 2013. "Will the decline of efficiency in China's agriculture come to an end? An analysis based on opening and convergence," China Economic Review, Elsevier, Elsevier, vol. 27(C), pages 179-190.

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