An Analysis on Technical Efficiency in Post-reform China

Xianbo Zhou, Kui-Wai Li () and Qin Li

MPRA Paper from University Library of Munich, Germany

Abstract: This paper employs a fully nonparametric stochastic frontier model with time and individual effects to study technical efficiency in China's post-reform economy. The panel data cover China's thirty provinces for the period of 1985–2008. The empirical results show that the average output elasticity of labor is larger than the other two inputs of capital and human capital. Based on the specified inefficiency Tobit model, the factor analysis on technical efficiency shows that the time effects of technical efficiency in China's post-reform economy are significantly contingent on the factors. There exists significant regional differences in technical efficiency in China's economic development, and a number of policy implications can be drawn.

Keywords: Fully; nonparametric; stochastic; frontier; Time; effects; and; individual; effects; Time; variant; Technical; efficiency; Tobit; model (search for similar items in EconPapers)
JEL-codes: C51 D24 O47 (search for similar items in EconPapers)
Date: 2010
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Related works:
Journal Article: An analysis on technical efficiency in post-reform China (2011)
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