Technical Efficiency and Its Determinants in Gansu, West China

Sizhong Sun

Microeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: This paper analyses the technical efficiency problem in Gansu Province, West China, using firm-level cross-sectional data. Compared with previous studies, which mostly focus on industries, this paper focuses on a geographic area instead. By applying the stochastic frontier framework, this paper arrives at four major findings : first, resource-based firms are more technically efficient on average than non-resource-based firms; second, foreign investment is beneficial to the improvement of technical efficiency; third, there is no evidence that ownership affects the technical efficiency of firms in Gansu province; and fourth, bigger firms tend to operate with more technical efficiency than smaller firms.

Keywords: stochastic frontier; technical efficiency; China (search for similar items in EconPapers)
JEL-codes: O13 Q30 (search for similar items in EconPapers)
Date: 2006-01
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Citations: View citations in EconPapers (1)

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Working Paper: Technical Efficiency and Its Determinants in Gansu, West China (2006)
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