An analysis on technical efficiency in post-reform China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal

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Author(s)

  • Xianbo Zhou
  • Kui-Wai Li
  • Qin Li

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)357-372
Journal / PublicationChina Economic Review
Volume22
Issue number3
Publication statusPublished - Sep 2011

Abstract

This paper employs a fully nonparametric stochastic frontier model with time and individual effects to study technical efficiency in China's post-reform economy. The panel data cover China's thirty provinces for the period of 1985-2008. The empirical results show that the average output elasticity of labor is larger than the other two inputs of capital and human capital. Based on the specified inefficiency Tobit model, the factor analysis on technical efficiency shows that the time effects of technical efficiency in China's post-reform economy are significantly contingent on the factors. There exists significant regional differences in technical efficiency in China's economic development, and a number of policy implications can be drawn. © 2011 Elsevier Inc.

Research Area(s)

  • Fully nonparametric stochastic frontier, Technical efficiency, Time effects and individual effects, Time variant, Tobit model

Citation Format(s)

An analysis on technical efficiency in post-reform China. / Zhou, Xianbo; Li, Kui-Wai; Li, Qin.

In: China Economic Review, Vol. 22, No. 3, 09.2011, p. 357-372.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journal