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Technical Efficiency and Its Determinants in Chinese Manufacturing Sector

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  • Yanrui Wu

Abstract

This paper examines technical efficiency and its determinants in Chinese manufacturing industries using survey data at the sector level. A stochastic frontier approach is applied to estimate technical efficiency rates for individual sectors. In particular, the empirical analysis focuses on regional comparisons of manufacturing performance and the determinants of technical efficiency among the sectors. The findings are used to draw policy implications for regional economic development.

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File URL: http://ecompapers.biz.uwa.edu.au/paper/PDF%20of%20Discussion%20Papers/2002/02-15.pdf
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Bibliographic Info

Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 02-15.

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Length: 21 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:uwa:wpaper:02-15

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Keywords: Frontier approach; technical efficiency; manufacturing; determinants;

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References

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  1. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  2. Wu, Yanrui, 2000. "Is China's economic growth sustainable? A productivity analysis," China Economic Review, Elsevier, vol. 11(3), pages 278-296.
  3. Zinan Liu & Juzhong Zhuang, 1998. "Evaluating Partial Reforms in the Chinese State Industrial Sector: a stochastic frontier cost function approach," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(1), pages 9-24.
  4. Sean M. Dougherty & Robert H. McGuckin, 2004. "The Effects of Federalism and Privatization on Productivity in Chinese Firms," Development and Comp Systems 0411016, EconWPA.
  5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  6. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
  7. Groves, Theodore, et al, 1994. "Autonomy and Incentives in Chinese State Enterprises," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 183-209, February.
  8. Lau, Kam-Tim & Brada, Josef C., 1990. "Technological progress and technical efficiency in Chinese industrial growth: A frontier production function approach," China Economic Review, Elsevier, vol. 1(2), pages 113-124.
  9. Jefferson, Gary H & Rawski, Thomas G & Yuxin, Zheng, 1992. "Growth, Efficiency, and Convergence in China's State and Collective Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 239-66, January.
  10. Mohsin S. Khan & Zuliu Hu, 1996. "Why is China Growing so Fast?," IMF Working Papers 96/75, International Monetary Fund.
  11. Borensztein, Eduardo & Ostry, Jonathan D, 1996. "Accounting for China's Growth Performance," American Economic Review, American Economic Association, vol. 86(2), pages 224-28, May.
  12. Fleisher, Belton M. & Chen, Jian, 1997. "The Coast-Noncoast Income Gap, Productivity, and Regional Economic Policy in China," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 220-236, October.
  13. K.P. Kalirajan & M.B. Obwona & S. Zhao, 1996. "A Decomposition of Total Factor Productivity Growth: The Case of Chinese Agricultural Growth before and after Reforms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 331-338.
  14. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
  15. Wu Yanrui, 1994. "Productivity Growth, Technological Progress and Technical Efficiency Change in China: A Three-Sector Analysis," Chinese Economies Research Centre (CERC) Working Papers 1994-05, University of Adelaide, Chinese Economies Research Centre.
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