Eliminating congestion in China’s papermaking and paper products industry: From both the perspective of increasing and decreasing inputs

Xian-tong Ren and Guo-liang Yang ()
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Xian-tong Ren: Shandong University
Guo-liang Yang: Chinese Academy of Sciences

Journal of Productivity Analysis, 2024, vol. 61, issue 1, No 6, 63-82

Abstract: Abstract Congestion is a well-known economic phenomenon in which excessive inputs lead to a decrease in the maximum possible outputs. This study analyzes the relationship between congestion and overinvestment using a data envelopment analysis framework to reveal that some congestion can be eliminated by increasing inputs. The proposed approach classifies congestion into two categories, relative and absolute congestion, depending on the possibility of eliminating congestion by increasing inputs. Corresponding methods for identifying and measuring congestion are proposed and employed for empirical analyses examining China’s papermaking and paper products industry. We find that most congestion in 2013–2016 is in the relative congestion and could be eliminated by increasing inputs. The primary causes of congestion are identified based on our analysis and corresponding policy suggestions are proposed for eliminating congestion.

Keywords: Data envelopment analysis; Congestion; China’s papermaking and paper products industry; Relative congestion; Absolute congestion (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11123-023-00675-2

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