IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i19p10827-d646317.html
   My bibliography  Save this article

Technological Innovation, Production Efficiency, and Sustainable Development: A Case Study from Shenzhen in China

Author

Listed:
  • Sheng Zhang

    (School of Environment & Natural Resources, Renmin University of China, Beijing 100872, China)

  • Meng Xu

    (Department of Mathematics, School of Science, Beijing Jiaotong University, Beijing 100091, China)

  • Yifu Yang

    (School of Environment & Natural Resources, Renmin University of China, Beijing 100872, China)

  • Zeyu Song

    (Shanxi Urban & Rural Planning and Design Institute Co., Ltd., Taiyuan 030024, China)

Abstract

Shenzhen is a national sustainable development innovation demonstration zone, with the theme of innovation leading the sustainable development of megacities. This manuscript studies technological innovation, production efficiency, and sustainable development and explores the impact of their relationship on Shenzhen. The benchmark test shows a significant negative correlation between the inefficiency of production, labor levels, investment levels, technical levels, and socioeconomic status. From 2001 to 2019, the production efficiencies of 21 prefecture-level cities in Guangdong Province were used as the research object. The Cobb–Douglas production function conducted panel stochastic frontier analysis and TOBIT regression, and the conclusion was robust. The mechanism test found that the economic growth of Guangdong Province, including Shenzhen, is still dominated by labor and investment. Its production efficiency has been dramatically impacted after 2008, and the increase in production inefficiency may be affected by the crowding-out effect of a four-trillion investment. Finally, based on the Tobit regression, we found that the rise in the labor force, capital input, technological level, and socioeconomic development level could reduce Shenzhen’s production inefficiencies by 3.6%, 20.2%, 2.5%, and 4%, respectively. There is still a long way to achieve sustainable development; however, Shenzhen’s technological innovation and mega-city reform process will provide valuable insights for other regions.

Suggested Citation

  • Sheng Zhang & Meng Xu & Yifu Yang & Zeyu Song, 2021. "Technological Innovation, Production Efficiency, and Sustainable Development: A Case Study from Shenzhen in China," Sustainability, MDPI, vol. 13(19), pages 1-12, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10827-:d:646317
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/19/10827/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/19/10827/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    2. William Greene, 2004. "Distinguishing between heterogeneity and inefficiency: stochastic frontier analysis of the World Health Organization's panel data on national health care systems," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 959-980, October.
    3. Yousha Liang & Kang Shi & Lisheng Wang & Juanyi Xu, 2017. "Local Government Debt and Firm Leverage: Evidence from China," Asian Economic Policy Review, Japan Center for Economic Research, vol. 12(2), pages 210-232, July.
    4. Yiyong Chen & John Zacharias & Mali Zeng, 2020. "Searching for the Center: A New Civic Role for the Central Business District in China," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    5. Xiaoyan Zheng & Almas Heshmati, 2020. "An Analysis of Energy Use Efficiency in China by Applying Stochastic Frontier Panel Data Models," Energies, MDPI, vol. 13(8), pages 1-17, April.
    6. Mark Andor & Frederik Hesse, 2014. "The StoNED age: the departure into a new era of efficiency analysis? A monte carlo comparison of StoNED and the “oldies” (SFA and DEA)," Journal of Productivity Analysis, Springer, vol. 41(1), pages 85-109, February.
    7. Christine Wong, 2011. "The Fiscal Stimulus Programme and Public Governance Issues in China," OECD Journal on Budgeting, OECD Publishing, vol. 11(3), pages 1-22.
    8. Deng, Lu & Jiang, Ping & Li, Sifei & Liao, Mingqing, 2020. "Government intervention and firm investment," Journal of Corporate Finance, Elsevier, vol. 63(C).
    9. Jian Wu & Guangdong Wu & Qing Zhou & Mi Li, 2014. "Spatial Variation of Regional Sustainable Development and its Relationship to the Allocation of Science and Technology Resources," Sustainability, MDPI, vol. 6(9), pages 1-18, September.
    10. Liu, Xiaozi & Heilig, Gerhard K. & Chen, Junmiao & Heino, Mikko, 2007. "Interactions between economic growth and environmental quality in Shenzhen, China's first special economic zone," Ecological Economics, Elsevier, vol. 62(3-4), pages 559-570, May.
    11. Richard Hu, 2019. "The State of Smart Cities in China: The Case of Shenzhen," Energies, MDPI, vol. 12(22), pages 1-18, November.
    12. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
    13. Lampe, Hannes W. & Hilgers, Dennis, 2015. "Trajectories of efficiency measurement: A bibliometric analysis of DEA and SFA," European Journal of Operational Research, Elsevier, vol. 240(1), pages 1-21.
    14. Zhiguo Li & Xiaorong Zhang, 2014. "Evaluating the Effectiveness and Efficiency of the Four-trillion Yuan Stimulus Package: Evidence from Stock Market Returns of Chinese Listed A Shares," Global Economic Review, Taylor & Francis Journals, vol. 43(4), pages 381-407, December.
    15. Bauer, Paul W. & Berger, Allen N. & Ferrier, Gary D. & Humphrey, David B., 1998. "Consistency Conditions for Regulatory Analysis of Financial Institutions: A Comparison of Frontier Efficiency Methods," Journal of Economics and Business, Elsevier, vol. 50(2), pages 85-114, March.
    16. Wang, Rong & Tan, Junlan, 2021. "Exploring the coupling and forecasting of financial development, technological innovation, and economic growth," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    17. Linjun Xie & Ali Cheshmehzangi & May Tan-Mullins & Andrew Flynn & Tim Heath, 2020. "Urban Entrepreneurialism and Sustainable Development: A Comparative Analysis of Chinese Eco-Developments," Journal of Urban Technology, Taylor & Francis Journals, vol. 27(1), pages 3-26, January.
    18. Laurent Weill, 2004. "Measuring Cost Efficiency in European Banking: A Comparison of Frontier Techniques," Journal of Productivity Analysis, Springer, vol. 21(2), pages 133-152, March.
    19. Alam, Ashraful & Uddin, Moshfique & Yazdifar, Hassan & Shafique, Sujana & Lartey, Theophilus, 2020. "R&D investment, firm performance and moderating role of system and safeguard: Evidence from emerging markets," Journal of Business Research, Elsevier, vol. 106(C), pages 94-105.
    20. Hua-peng Qin & Qiong Su & Soon-Thiam Khu & Nv Tang, 2014. "Water Quality Changes during Rapid Urbanization in the Shenzhen River Catchment: An Integrated View of Socio-Economic and Infrastructure Development," Sustainability, MDPI, vol. 6(10), pages 1-19, October.
    21. Ouyang, Xiaoling & Wei, Xiaoyun & Sun, Chuanwang & Du, Gang, 2018. "Impact of factor price distortions on energy efficiency: Evidence from provincial-level panel data in China," Energy Policy, Elsevier, vol. 118(C), pages 573-583.
    22. 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.
    23. Alexei Yumashev & Beata Ślusarczyk & Sergey Kondrashev & Alexey Mikhaylov, 2020. "Global Indicators of Sustainable Development: Evaluation of the Influence of the Human Development Index on Consumption and Quality of Energy," Energies, MDPI, vol. 13(11), pages 1-13, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mehdi Farsi & Massimo Filippini, 2005. "A Benchmarking Analysis of Electricity Distribution Utilities in Switzerland," CEPE Working paper series 05-43, CEPE Center for Energy Policy and Economics, ETH Zurich.
    2. Mehdi Farsi & Massimo Filippini & William Greene, 2006. "Application Of Panel Data Models In Benchmarking Analysis Of The Electricity Distribution Sector," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(3), pages 271-290, September.
    3. Farsi, Mehdi & Filippini, Massimo & Kuenzle, Michael, 2007. "Cost efficiency in the Swiss gas distribution sector," Energy Economics, Elsevier, vol. 29(1), pages 64-78, January.
    4. Shasha Liu & Robin Sickles, 2021. "The agency problem revisited: a structural analysis of managerial productivity and CEO compensation in large US commercial banks," Empirical Economics, Springer, vol. 60(1), pages 391-418, January.
    5. Subal Kumbhakar & Anatoly Peresetsky, 2013. "Cost efficiency of Kazakhstan and Russian banks: results from competing panel data models-super-1," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 6(1), pages 88-113, March.
    6. Thomas Bolli & Anh Vo Thi, 2012. "On the Estimation Stability of Efficiency and Economies of Scale in Microfinance Institutions," KOF Working papers 12-296, KOF Swiss Economic Institute, ETH Zurich.
    7. Lundgren, Tommy & Marklund, Per-Olov & Zhang, Shanshan, 2016. "Industrial energy demand and energy efficiency – Evidence from Sweden," Resource and Energy Economics, Elsevier, vol. 43(C), pages 130-152.
    8. Barros, Carlos Pestana & Williams, Jonathan, 2013. "The random parameters stochastic frontier cost function and the effectiveness of public policy: Evidence from bank restructuring in Mexico," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 98-108.
    9. Carlos Pestana Barros & Zhongfei Chen & Peter Wanke, 2016. "Efficiency in Chinese seaports: 2002–2012," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 18(3), pages 295-316, September.
    10. Banfi, Silvia & Filippini, Massimo, 2010. "Resource rent taxation and benchmarking--A new perspective for the Swiss hydropower sector," Energy Policy, Elsevier, vol. 38(5), pages 2302-2308, May.
    11. Quintano, Claudio & Mazzocchi, Paolo & Rocca, Antonella, 2021. "Evaluation of the eco-efficiency of territorial districts with seaport economic activities," Utilities Policy, Elsevier, vol. 71(C).
    12. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Benchmarking and Regulation in the Electricity Distribution Sector," CEPE Working paper series 07-54, CEPE Center for Energy Policy and Economics, ETH Zurich.
    13. Cazals Catherine & Dudley Paul & Florens Jean-Pierre & Jones Michael, 2011. "The Effect of Unobserved Heterogeneity in Stochastic Frontier Estimation: Comparison of Cross Section and Panel with Simulated Data for the Postal Sector," Review of Network Economics, De Gruyter, vol. 10(3), pages 1-22, September.
    14. Castiglione, Concetta & Infante, Davide & Zieba, Marta, 2023. "Public support for performing arts. Efficiency and productivity gains in eleven European countries," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    15. Md Zobaer Hasan & Anton Abdulbasah Kamil & Adli Mustafa & Md Azizul Baten, 2012. "Stochastic Frontier Model Approach for Measuring Stock Market Efficiency with Different Distributions," PLOS ONE, Public Library of Science, vol. 7(5), pages 1-9, May.
    16. Karim L. Anaya & Michael G. Pollitt, 2014. "Does Weather Have an Impact on Electricity Distribution Efficiency? Evidence from South America," Working Papers EPRG 1404, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    17. Farsi, Mehdi & Filippini, Massimo, 2009. "An analysis of cost efficiency in Swiss multi-utilities," Energy Economics, Elsevier, vol. 31(2), pages 306-315, March.
    18. Keller, Michael, 2020. "Wasted windfalls: Inefficiencies in health care spending in oil rich countries," Resources Policy, Elsevier, vol. 66(C).
    19. Tabak, Benjamin M. & Miranda, Rogério Boueri & Fazio, Dimas M., 2013. "A geographically weighted approach to measuring efficiency in panel data: The case of US saving banks," Journal of Banking & Finance, Elsevier, vol. 37(10), pages 3747-3756.
    20. repec:zbw:bofitp:2010_001 is not listed on IDEAS
    21. Russ Kashian & Nicholas Lovett & Yuhan Xue, 2020. "Has the affordable care act affected health care efficiency?," Journal of Regulatory Economics, Springer, vol. 58(2), pages 193-233, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10827-:d:646317. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.