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.
Battese, G. E., & Coelli, T. J. (1992). Frontier Production Functions, Technical Efficiency and Panel Data: With Application to Paddy Farmers in India. Journal of Productivity Analysis, 3, 153-169. https://doi.org/10.1007/BF00158774
Xia, C. L., & Cheng, L. (2001). Research on the Spillover Effects of FDI on the Technical Efficiency of China’s Industrial Enterprises—The Quantitative Analysis of Chinese Industrial Firms from 2002 to 2006. China Industrial Economics, No. 07, 55-65.