Evaluation of Urban Infrastructure Investment Efficiency: Empirical Evidence from Heilongjiang Province, China

Xiaodong Yang,Yafeng Yu,Yongxiang Wu

doi:10.1155/2015/790867

Xiaodong Yang, Yafeng Yu + Show 1 more

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https://doi.org/10.1155/2015/790867

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Abstract

The rapid growth of urban infrastructure investment in China has brought with it some serious problems that cannot be ignored, such as low investment efficiency and faulty investment decision-making. Therefore, based on the latest research findings related to infrastructure efficiency evaluation theory and evaluation methods, this paper uses empirical evidence from Heilongjiang province to analyze urban infrastructure investment efficiency. To analyze investment efficiency in the province, a new infrastructure investment efficiency evaluation model is developed known as the SDEA-Malmquist model. The model reveals that urban infrastructure investment projects in Heilongjiang province are relatively effective and stable but that the efficiency of such investments varies according to the city in which they are made. Overall efficiency is consistent with the TFC (total final consumption) index, but the index fluctuates within a narrow range between cities due to technological differences.

Highlights

As an integral part of a city, urban infrastructure is the measure of a city’s healthy and orderly development, and an important indicator of a city’s modernization
To take account of these shortcomings, this paper develops a new model combining Stochastic Data Envelopment Analysis (SDEA) and the Malmquist index to produce the SDEA-Malmquist model that can be used to evaluate urban infrastructure investment efficiency
The efficiency change index consists of the pure technical efficiency change (PECH) index and the scale efficiency change (SECH) index

Summary

Introduction

As an integral part of a city, urban infrastructure is the measure of a city’s healthy and orderly development, and an important indicator of a city’s modernization. Along with China’s rapid urbanization in recent years, the government has increased its investment in urban infrastructure in order to stimulate the development of the national economy through the associated social, economic, and cultural benefits. In the decision-making process of China’s urban infrastructure investment, the decision-making body for urban infrastructure has tended towards diversified patterns in accordance with improved social awareness and a healthy and orderly development of the market economy. The rapid development of urban infrastructure has brought with it wrong investment decisions, which has resulted in a serious waste of resources that hinders the development of cities and causes more serious social problems [1,2,3]. Scholars have paid particular attention to research in the area of urban infrastructure investment efficiency [4,5,6]

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