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Technical Efficiency and Its Determinants in Gansu, West China

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  • Sizhong Sun

    (ANU)

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," Microeconomics Working Papers 21834, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:microe:21834
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    References listed on IDEAS

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    1. Wang, Jirong & Cramer, Gail L. & Wailes, Eric J., 1996. "Production efficiency of Chinese agriculture: evidence from rural household survey data," Agricultural Economics, Blackwell, vol. 15(1), pages 17-28, September.
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    6. Liu, Zinan & Zhuang, Juzhong, 2000. "Determinants of Technical Efficiency in Post-Collective Chinese Agriculture: Evidence from Farm-Level Data," Journal of Comparative Economics, Elsevier, vol. 28(3), pages 545-564, September.
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    More about this item

    Keywords

    stochastic frontier; technical efficiency; China;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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