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Has China's fast industrial growth been efficient? An industry-level investigation with a newly constructed data set

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  • Harry X. Wu
  • Esther Y. P. Shea
  • Alice Shiu

Abstract

We adopt contemporaneous, nonradial and variable returns to scale assumptions in a data envelopment analysis (DEA) exercise to address the inefficiency problem in Chinese industries in different policy regimes using a newly constructed data set for 24 Chinese manufacturing industries in 1952-2008. While confirming that the central planning period was indeed a 'graveyard' for productivity that entailed severe technical regress and efficiency losses, we do not find a steady improvement in efficiency during the reform period despite strong technical progress. We argue that the resurgent prominence of the government and the state sector since the late 1990s, especially following China's World Trade Organization accession, has obstructed the efficiency improvement.

Suggested Citation

  • Harry X. Wu & Esther Y. P. Shea & Alice Shiu, 2015. "Has China's fast industrial growth been efficient? An industry-level investigation with a newly constructed data set," Applied Economics, Taylor & Francis Journals, vol. 47(40), pages 4275-4298, August.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:40:p:4275-4298
    DOI: 10.1080/00036846.2015.1026589
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    Cited by:

    1. Qingfeng Tian & Shuo Zhang & Huimin Yu & Guangming Cao, 2019. "Exploring the Factors Influencing Business Model Innovation Using Grounded Theory: The Case of a Chinese High-End Equipment Manufacturer," Sustainability, MDPI, vol. 11(5), pages 1-16, March.
    2. Hong Liao & Xiang Li, 2023. "Status and Trends of Research on China’s Third Front Construction in English Language and Brief Comparison With Chinese Counterpart," SAGE Open, , vol. 13(1), pages 21582440231, February.
    3. DiMaria, charles-henri, 2024. "ESG principles: the limits to green benchmarking," MPRA Paper 120410, University Library of Munich, Germany, revised 2024.
    4. Dotun Olaleye Faloye & Idowu Owoeye & Kunle Jayeola, 2021. "The Key Drivers of Business Model Innovation in Developing Countries’ Firms: Survey of Micro and Small Scale Enterprises in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(7), pages 148-157, July.
    5. Harry X. Wu & Deb Kusum Das & K. L. Krishna & Pilu Chandra Das, 2017. "How Does the Productivity and Economic Growth Performance of China and India Compare in the Post-Reform Era, 1981-2011?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 91-113, Fall.

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