Analysis of the Traffic Operating Efficiency in China after the Economic Stimulus Plan

Abstract

In order to verify the implementation effect and the decision-making rationality of the transport investments in large-scale economic stimulus plan, the application of data envelopment analysis model and related software was used to calculate the changes of the scale efficiency and technical efficiency and comprehensive efficiency of the transport system as the investment target in a period of the large-scale infrastructure construction. Through the analysis of efficiency changes of traffic system, to determine the operation of the traffic system, to evaluate the decision rationality of the transportation infrastructure investment in the economic stimulus plan and making future direction and strength of the investment decision. After the financial crisis in 2008, in order to avoid the economic downtown, a variety of economic stimulus plans were implemented in China to stimulate the economic growth, improve employment, and maintain the stability of society through government policy especially the construction of traffic infrastructure. At the same time, there are some critical comments on economic stimulus plan on overinvestment, ahead of consumption, redundant construction and beyond of consumers’ abilities. In this context, this paper probes the effects of traffic infrastructure constructions in economic stimulus plan by researching the changes of scale efficiency, technical efficiency and service efficiency before and after the implementation of economic stimulus plan. The pros and cons of the economic stimulus plans can be located by this analysis. Researching the efficiency changes among different modes of transportation in different industries and refining the effects of economic investment on different industries can provide reference for the future economic decision. 2. LITERATURE REVIEW Most previous studies on efficiency of infrastructure construction are about the effect of investment on economic growth. For example, Yu Weiping (2008) of Business School in Ji Lin University calculated the marginal contribution rates of total fixed asset investment and infrastructure construction on GDP. The conclusion that the marginal contribution rate of total fixed asset investment on GDP is higher than that of infrastructure construction on GDP shown the infrastructure construction