Comparative analysis of port efficiency in Yangtze River Delta and Pearl River Delta: a meta Dynamic D.D.F. approach

Abstract

The Yangtze River Delta and Pearl River Delta are two regions with the highest level of economic development in China, and their port development is at the forefront of the country. This study measures the efficiency of 23 major ports in the two deltas from 2010 to 2018 using the meta Dynamic Directional Distance Function (D.D.F.) model and discusses the technology gap and the reasons for inefficiency of the ports. The research results show that 80% of the ports in these two deltas are inefficient. The Yangtze River Delta’s port efficiency is higher than that of the Pearl River Delta, but the internal efficiency difference of the Yangtze River Delta port cluster is more significant. The efficiency ranking of most ports is inconsistent under the meta-frontier (M.F.) and group frontier (G.F.), and the average technology gap ratio (T.G.R.) of ports in the Pearl River Delta gradually exceeds that in the Yangtze River Delta. The inefficiency of ports in the Pearl River Delta is caused by input factors, and the inefficiency of ports in the Yangtze River Delta is also related to the containerisation level.