Examination of inland port technical efficiency and its spillover patterns: Evidence from the Yangtze River region
Zhen Wu
Transport Policy, 2025, vol. 171, issue C, 595-614
Abstract:
This study applies a Spatial Stochastic Frontier Model with endogeneity correction (SSFE) to evaluate the technical efficiency of 23 major Yangtze River inland ports and examine efficiency spillover patterns within the port system. By addressing endogeneity issues in traditional Stochastic Frontier Model (SF), the SSFE improves the accuracy of efficiency assessment and its determinants. Incorporating spatial lag terms, the model identifies two forms of indirect technical efficiency (spatial spillovers), offering deeper insights into whether ports act as contributors to or beneficiaries of these efficiency spillovers. The results underscore the importance of regional centrality and economic hinterland strength in shaping a port's ability to generate spillovers. Moreover, the number of beneficiary ports far exceeds that of contributors, indicating that efficiency gains are largely driven by a few core ports. Over time, inland port efficiency has improved significantly—particularly in the lower and middle Yangtze regions—though substantial disparities persist, especially in the upper reaches. Key environmental drivers of efficiency include hinterland road infrastructure, port–city coordination, and major infrastructure projects such as the Three Gorges Dam. This study enhances the robustness of port efficiency estimation and offers actionable insights for policymakers and port operators to improve port efficiency, optimize resource allocation and strengthen regional integration.
Keywords: Port technical efficiency; Yangtze river inland port; SSFE; Spatial spillovers (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:trapol:v:171:y:2025:i:c:p:595-614
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DOI: 10.1016/j.tranpol.2025.07.005
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