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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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    Cited by:

    1. Anthony N. Rezitis & Maria A. Kalantzi, 2016. "Investigating Technical Efficiency and Its Determinants by Data Envelopment Analysis: An Application in the Greek Food and Beverages Manufacturing Industry," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 254-271, April.

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    More about this item

    Keywords

    stochastic frontier; technical efficiency; China;
    All these keywords.

    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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