The efficiency of provincial governments in China from 2001 to 2010: measurement and analysis

Abstract

Measurement and analysis of local government efficiency is important; however, it is also difficult. To measure government efficiency, this paper employs the relative measurement method described in the research literature. It develops and applies an index to measure and rank the government efficiency of 31 provincial governments in China (including autonomous regions and municipalities) from 2001 to 2010. This permits a comparative analysis of provincial government efficiency and of the factors that influence it, among China's eastern, central, and western regions. The findings suggest a high association between the degree of economic development and local government efficiency, and in this respect, a large disparity has been observed between central and western regions on the one hand and the eastern region on the other. It is argued that provincial governments in the central and western regions should focus on improving residents' welfare, the quality of regional economic growth, and the level of social development by constantly enhancing government efficiency, optimizing the supply of public services, controlling the size of government, and thus improving residents' disposable income. Copyright © 2014 John Wiley & Sons, Ltd.