This
paper uses the stochastic frontier analysis to analyze the China’stechnical efficiency on
the basis of 280 cities from 1998 to 2015. The empirical results indicated
that: the average technical efficiency of China’s industrial was increasing
steadily in the past 18 years. The technical efficiency of east, middle and
west regions are quite different: the east regions mean technical efficiency
was higher than middle area about 27.3%, or higher than west area about 35.9%.
In addition, the marketization process, R&D expenditure, education investment
have a positive effect on the technical efficiency, but the FDI has a negative
effect on eastern technical efficiency, which may due to the entry of FDI in
eastern areas do not play a comparative advantage at the present stage.
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