Disparity in Production Efficiency of China's TVEs Across Regions: A Stochastic Frontier Production Function Approach

Abstract

This study aims to empirically examine the changes in production efficiencies of China's township and village enterprises (TVEs) between 1988 and 1993 with particular reference to the spatial disparity of these changes. The stochastic frontier production model, which incorporates inefficiency effects, is adopted in the study. Findings of this study indicate that the technical production efficiency of China's TVEs had, on average, declined between the six years under study. Furthermore, the findings also suggest that the industrial performance of China's TVEs (in terms of production efficiency), like the development.