The effects of corruption on China’s provincial eco-efficiency

Zhujia Yin, Leilei Li, C. Hueng and Yantuan Yu

Journal of the Asia Pacific Economy, 2024, vol. 29, issue 2, 463-482

Abstract: This paper extends the literature on economic consequences of corruption. We simultaneously consider corruption’s impacts on output, production efficiency, and environmental performance in an eco-efficiency framework. Pollution is considered as undesirable output in the production process. We construct an eco-efficiency measure from a non-oriented data envelopment analysis model that incorporates a non-convex metafrontier, super-efficiency, and undesirable outputs into a directional distance function. By using panel data from 30 Chinese provinces from 1998 to 2016 in a spatial analysis, we find that corruption, measured by filed-cases of corruption-related crimes, has a significantly negative direct impact on eco-efficiency. The regional spillover effect is not significant for provinces in the same geographical region, but is marginally significant for provinces sharing a common border.

Date: 2024
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DOI: 10.1080/13547860.2022.2046936

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