Productivity growth and environmental efficiency of the nonferrous metals industry: an empirical study of China

Abstract

This study intends to provide an insight into China's nonferrous metals industry production based on the analysis of the environmental efficiency, the Malmquist productivity index (MPI), and the Malmquist–Luenberger productivity index (MLPI). The empirical experiment based on the annual data of 27 regions (including provinces, autonomous regions and municipalities) of China during 2003–2009 shows the following results. First, the industry's environmental efficiency in the east area is mostly higher than that of the other area. Second, the industry's average annual change of MPI and MLPI in China were 4.4% and 0.9%, respectively. This indicated that the total factor productivity growth of the industry was overestimated if undesirable outputs were ignored. Third, the industry's productivity was mainly affected through technological advances rather than endogenous factors such as improvements in managerial practices. Finally, during the worldwide financial crisis occurred in 2008, the industry's MLPIs exceeded the MPIs in most regions through measures such as adjustment of the product structure and elimination of backward production capacity.