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Technical Efficiency and Its Determinants in Gansu, West China

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  • Sizhong Sun

Abstract

This paper analyses the technical efficiency problem in Gansu Province, West China, using firm-level cross-sectional data. Compared with previous studies, which mostly focus on industries, this paper focuses on a geographic area instead. By applying the stochastic frontier framework, this paper arrives at four major findings: first, resource-based firms are more technically efficient on average than non-resource-based firms; second, foreign investment is beneficial to the improvement of technical efficiency; third, there is no evidence that ownership affects the technical efficiency of firms in Gansu province; and fourth, bigger firms tend to operate with more technical efficiency than smaller firms.

Suggested Citation

  • Sizhong Sun, 2006. "Technical Efficiency and Its Determinants in Gansu, West China," Asia Pacific Economic Papers 355, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:csg:ajrcau:355
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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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