Technical Efficiency and Productivity Change in China's High- and New-Technology Industry Development Zones

Abstract

This paper studies the relative efficiency and total factor productivity (TFP) change of the high- and new-technology industry development zones (HNTIDZs) in China. We apply the Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) to the panel data sample, covering the period 1996–2002, for 53 HNTIDZs in China. All zones are, according to the Norman and Stocker suggestions, reclassified into eight areas. Viewed as a whole, the efficiency and TFP change of all areas are passable. This paper also divides HNTIDZs into five groups serving as reference for the agencies of authority over HNTIDZs as regards policy-making and strategic planning and development. As Xiamen, Chengdu, Huizhou,Wuxi, Shenzhen, Beijing Zhongguancun, Shanghai and Yangling have a technical efficiency (TE) of 1 at the frontier line of efficiency, there is no urgent need to make adjustment. The rest, in comparison, are relatively inefficient and should be adjusted according to input excesses and output deficits and this should benefit policy-makers.