Technical Efficiency In China Research Articles

Evaluation of marginal abatement cost and potential reduction in China's industrial carbon emissions: A quadratic directional output distance function approach

As a relevant indicator for quantifying the value of carbon emissions, the marginal abatement cost (MAC) of carbon emissions has received increasing attention from academics and policymakers. This study uses a quadratic directional output distance function to analyse the technical efficiency, potential emission reduction and shadow prices of China's industrial carbon emissions. The results show that the technical efficiency of China's industry gradually decreased during the sample period. From the perspective of regions with different carbon intensity and industrial output, regions with lower carbon intensity and higher industrial output gradually closed to the optimal frontier for the technology use level and had relatively high technical efficiency. Rising technical inefficiency and carbon emissions led to a potential emission reduction that also exhibits an upwards trend. In addition, the MAC of industrial carbon emissions exhibits a U-shaped trajectory, with 2011 as the turning point. Generally, in recent years, regions with lower carbon intensity and those with higher industrial output have a relatively high MAC for industrial carbon emissions. The empirical findings reveal that a carbon emission reduction policy should be formulated and targeted to each province, and the principle of ‘easy before difficult’ can be followed to promote emission reduction.

Regional Differences and Convergence of Technical Efficiency in China’s Marine Economy under Carbon Emission Constraints

With the continuous development of China’s marine economy and the increasing pollution in marine-related industries, how to implement a sustainable development strategy in the marine economy has become an important issue. Under the stochastic frontier analysis framework, this paper measures the technical efficiency of the marine economy in 11 coastal provinces in China under carbon emission constraints from 2006 to 2016 and analyzes regional differences and the dynamic evolution of technical efficiency and its influencing factors. Panel unit root test is applied to analyze the stochastic convergence of technical efficiency of the inter-regional marine economy. The result shows that: in the reference period, the technical efficiency of the marine economy is on the rise. Guangdong and Shanghai are in the lead. Technical level and industrial structure have a positive impact on technical efficiency, while the structure of property rights, FDI, energy prices, and energy structure have a negative effect on it. On the whole, the changes in the technical efficiency of coastal provinces present a process from concentration to differentiation. There is a stochastic convergence between the Pan-Pearl River Delta and the Yangtze River Delta. Raising the technological level, promoting low-carbon production in the marine industry, and strengthening inter-regional cooperation have a certain effect on the improvement of the technical efficiency of the marine economy.

Subsidies and tax incentives - Does it make a difference on TFP? Evidences from China's photovoltaic and wind listed companies

Under potent policy support, China's photovoltaic (PV) and wind power industries have scored remarkable achievements. However, the mechanism of how the policy remains controversial. Based on the data of 62 listed companies from 2007 to 2020, this study constructs fixed-effect models and PSM models to investigate the effect of government subsidies and tax incentives on the technical efficiency of China's PV and wind power companies, as well as the role of R&D investment and operation efficiency. The results indicate that government support policies have a different impact on the companies' technical efficiency. Subsidies have significant inhibitory effects on technical efficiency by squeezing out private R&D investment. Meanwhile, tax incentives boost technical efficiency and operation efficiency recur to a mediating role. Based on these results, some valuable suggestions for improving the government policy mechanism of the photovoltaic and wind power industry are proposed.

Impact of African Swine Fever Epidemic on the Cost Intensity of Pork Production in China

China’s African swine fever (ASF) outbreak, which started in 2018, has had a huge and far-reaching impact on China’s hog industry, and it has not been completely eliminated so far. This article analyzes the impact of the ASF epidemic on the costs and technical efficiency of hog production in China based on data from the China Agricultural Product Cost–Benefit Compilation (2012–2021) using a stochastic frontier trans-log production function model. The results show that, after the outbreak of the ASF epidemic in China, feed costs, medical and epidemic prevention costs, and other costs of hog production in China increased significantly; the technical efficiency of China’s hog production decreased significantly; large-scale hog farms were the most responsive to and greatly affected by the ASF epidemic; and there are regional differences in the impact of the ASF epidemic on technical efficiency of hog production. Future policies should focus on strengthening the R&D investment and technology promotion capacity of hog production, developing moderate-scale farming, and enhancing regional cooperation to improve technical efficiency of hog production.

中国FDI、OFDI对技术效率的影响研究——基于省级面板数据的实证分析

中国FDI、OFDI对技术效率的影响研究——基于省级面板数据的实证分析

Tourism Supply Efficiency: An Analysis of Countries in the Asia-Pacific Region

The objective of this research is to analyze the factors affecting the tourism supply and its efficiency of the tourism supply for countries in the Asia-Pacific region. The method uses the stochastic frontier with Maximum Likelihood Estimation (MLE) analyzed by Frontier software. 4.1. The data were collected from panel data from 2010 - 2019 for 23 countries. The results of the study revealed that 1) Tourism investment from the private sector and timing factors positively affect the tourism supply of countries in the Asia-Pacific region, while the tourism labor value factor has a negative effect on the tourism supply of countries in the region 2) For the technical performance measurement of tourism supply in each sub-region in the Asia-Pacific region, the average is between 0.387 and 0.657. East Asia shows the highest technical efficiency in China, Hong Kong, Japan, Macau and Mongolia while South Asia has the lowest technical efficiency in Bangladesh, India, Nepal, Pakistan, Sri Lanka and the Maldives, respectively.

Does the grassland ecological compensation policy improve the herders' breeding technical efficiency in China?-Based on the parallel mediation effect model.

The Grassland Ecological Compensation Policy (abbreviated as GECP), which aims to realize the ecological protection by reducing the stock-carrying capacity of pastures and promote the transformation of pasture animal husbandry by improving the herders' breeding methods, has been a major project in China's grassland pastoral areas and grassland ecological construction. This study, thus, sought to measure the breeding efficiency of herders before and after the implementation of GECP. Moreover, the study also thought to analyze the effect and the effecting path of the implementation of GECP on the efficiency of herders' livestock breeding. GECP enables herders to obtain financial subsidies while minimizing the utilization of grassland, which brings challenges and opportunities to herders' traditional livestock production. This study used the two-stage data obtained from a randomly selected sample of 449 herders in the Inner Mongolia grassland area of China in 2018. Data envelopment analysis (DEA) and parallel mediating effect (PME) models were used to analyze the data. The results show that the general effect of GECP on the breeding efficiency of herders in the Inner Mongolia is positive (P < 0.01), and the change of breeding methods (direct effect) is the main influence path. Specifically, the grassland circulation behavior (P < 0.01) and the scale of breeding (P < 0.01) are part of the mediating effect. While the mediating effect of the breeding structure is not significant (P > 0.1). This study also shows that the non-agricultural and animal husbandry income of herders has a negative impact on the breeding efficiency (P < 0.01), and herders' age and breeding scale have a positive effect on the breeding efficiency (P<0.01). This study has not only answered the question whether the GECP can improve the efficiency of husbandry, but also focused on the analysis of the impacting mechanism of policies on efficiency. It is of great significance to further improve GECP and the related supporting policies and promote the transformation of China's grassland animal husbandry.

Technical Efficiency of China’s Agriculture and Output Elasticity of Factors Based on Water Resources Utilization

A stochastic frontier approach (SFA) model of translog production function was constructed to analyze the growth effect of agricultural production factors on grain production in China. Under the condition of unchanged cultivated land, the agricultural labor, capital, and water were regarded as input elements of the agricultural production function. The maximum likelihood estimation (MLE) method was used to analyze the technical efficiency, output elasticity, substitution elasticity, and relative variability of grain production in China from 2004 to 2018. The results showed that: (1) For the technical efficiency and output elasticity of the input factors of grain production, there were significant differences in different provinces. For example, the water resource was insufficient in Beijing and Shanghai, but the output elasticity of water was high. Heilongjiang was rich in water and had high technical efficiency. For Xinjiang, water was sufficient, but its output elasticity was deficient and the technical efficiency didn’t increase. (2) The overall technical efficiency level was relatively low and was still declining year by year; the output elasticity of water was much greater than that of capital. There was still great potential for grain growth. (3) Optimizing resource allocation and controlling the appropriate ratio of input factors to develop grain production could achieve the maximum benefits. Finally, according to the empirical results, this paper put forward some practical policy suggestions for optimizing the allocation of input factors, especially water and capital, which can ultimately improve agricultural productivity by improving technical efficiency.

Spatio‐temporal dynamics of technical efficiency in China’s specialized markets: A stochastic frontier analysis approach

AbstractChina’s specialized markets as a special form of bottom‐up capital agglomeration have played a key role in fostering regional development. It once exhibited positive externalities with high efficiencies. However, given the rapid proliferation of specialized markets and the penetration of E‐commerce, their advantages may have shifted and the understanding of this shift is limited. The paper explores the spatio‐temporal dynamics of China’s specialized markets in terms of technical efficiency. Based on turnover data from Statistical Yearbooks of China Commodity Exchange Market from 2000 to 2016, technical efficiencies in specialized markets are measured by a Stochastic Frontier Analysis (SFA) approach using panel data. The results show that (a) the technical efficiencies in China’s specialized markets are significantly divergent in space over time; (b) labor input has notable effect on efficiency increase, while capital input has no significant effect; (c) informatization level, cluster size, and degree of market openness are identified to have a positive effect on specialized market’s technical efficiency. This paper argues that specialized markets should be taken seriously in the cluster evolution research. The role of proximity and the bounded links between specialized markets and their local clusters is the key to understanding their changing forms, performances, and trajectories.

Analysis of Development Performance Evaluation of Marine Enterprises in China Based on SBM Model

Ran, Y. and Zhang, Z., 2020. Analysis of development performance evaluation of marine enterprises in China based on SBM model. In: Yang, D.F. and Wang, H. (eds.), Recent Advances in Marine Geology and Environmental Oceanography. Journal of Coastal Research, Special Issue No. 108, pp. 254–257. Coconut Creek (Florida), ISSN 0749-0208.At present, the development efficiency of the marine economy is in a state of mild recession. On the basis of the slacks-based measure model, the static technical efficiency of China's regional marine economy is measured, and the total factor productivity of regional marine economy is decomposed dynamically. The Malmquist–Luenberger index dynamically decomposed the total factor productivity of the regional marine economy. In the process of regional marine economic development, China's coastal areas should improve technical efficiency on the basis of technological progress, pay attention to the input of environmental protection and environmental governance, and achieve more output with the same input.

Efficiency Analysis of China's Water Industry: Evidence From the Cross-national Comparison and Listed Companies

This paper estimates the efficiency of 108 water listed companies in China, U.S.A, and U.K by using the metafrontier model from 2015 to 2018. The results show that the technical efficiency of China’s urban water industry is relatively low. But the water industry efficiency gap between China and the world is narrowing.

Empirical Analysis of Technical Efficiency of Chinese Aerospace Manufacturing

This paper constructs panel data using relevant data on aerospace manufacturing in 17 provinces and cities in China from 2010 to 2015. The B-C (1995) model was established using the SFA method. A trans-log production function model is used to analyze and study the technical efficiency of China’s aerospace manufacturing industry. Then we analyze the technical efficiency of Chinese aerospace manufacturing industry. The research results show that: First, the overall technical efficiency of Chinese Aerospace manufacturing industry is at a moderately high level, with an average technical efficiency of 0.8673. Second, the increase in export delivery value and sales revenue of new products has a relatively weak impact on the improvement of technological efficiency. Third, the R & D equivalent to full-time equivalent and the addition of fixed assets will significantly affect the technical efficiency of China’s aerospace manufacturing industry. Finally, this article puts forward some policy suggestions based on the research results.

The Impact of Green Financial Agglomeration on the Ecological Efficiency of Marine Economy

Xu, Z.-L.; Zhai, S., and Qian, C.-F., 2019.The impact of green financial agglomeration on the ecological efficiency of marine economy. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 988–991. Coconut Creek (Florida), ISSN 0749-0208.Compared human capital with marine economic and technological efficiency, the contribution of physical capital to the marine economy is greater. During the sample period, the marine economic and technical efficiency of China's coastal areas showed an overall upward trend. After entering the “Twelfth Five-Year Plan”, the growth rate of marine economic and technological efficiency accelerated significantly. From the perspective of the region, the efficiency values of Shanghai and Guangdong are always in the higher efficiency range. Tianjin, Shandong and Jiangsu rise from the medium efficiency range to the higher efficiency range, and Hebei rises from the lower efficiency range to the medium efficiency range.

How to optimize the allocation of research resources? An empirical study based on output and substitution elasticities of universities in Chinese provincial level

Although significant progress has been made in China's basic research in recent years, there remains a wide gap between research in China and that from developed countries. How to optimize the allocative efficiency of research resources is of great importance for increasing research output. In this paper, using the fixed effect stochastic frontier model based on the translog production function, we estimate output and substitution elasticities of research and development (R&D) inputs at universities in China's provincial level during 2009–2016. We find that the R&D technical efficiency of China's universities, after a rapid growth, has tended to become relatively stable. Improvements of internationalization degree and exogenous R&D capabilities are conducive to promoting R&D technical efficiency, whereas expenditures from government grants inhibit the promotion of R&D technical efficiency; the effects of R&D capital deepening and internet penetration are not evident. The output elasticity of R&D capital is much higher than that of R&D personnel, suggesting that R&D capital is the main driving force of research output. The substitution elasticity between R&D capital and personnel has experienced a change from substitution to complementary since 2014. To realize sustained growth of research output, we should increase R&D input with positive output elasticity or reduce R&D input with negative output elasticity, making the necessary trade-offs according to the substitution relationship between the two R&D inputs.

Will land transfer always increase technical efficiency in China?—A land cost perspective

The increasingly open market in China has ushered significant changes in the Chinese agricultural sector. Most existing research indicates that land transfer improves technical efficiency. However, this study finds that from the perspective of land cost, land transfer will have a negative impact on technical efficiency in China. With the development of agricultural moderate-scale operation, land cost continues to rise. From 2009 to 2016, land transfer price in Jiangsu Province rose from 3412.5 CNY/hm2 to 11,866.5 CNY/hm2, accounting for 38.1% of the total production cost. These are high prices, even at the international level. A further empirical test shows that land cost has an inverted “U” shape effect on the technical efficiency of wheat production. In other words, when the land cost for two growing seasons exceeds 3514.35 CNY/hm2 or the land cost for the wheat growing season is above 1665.45 CNY/hm2, increasing the land cost will further reduce the competitiveness of the wheat industry. To develop Chinese agriculture, it is necessary to internalize and market land cost through land contract cooperation and land custody. It is also possible to consider establishing a land-transfer insurance system and promote the sustainable development of land transfer.

Nonparametric Estimation and Hypothesis Testing for Technical Efficiency of China's Commercial Banks

Nonparametric Estimation and Hypothesis Testing for Technical Efficiency of China's Commercial Banks

Effects of Farm Size on Technical Efficiency in China's Broiler Sector: A Stochastic Meta‐Frontier Approach

This paper employs the stochastic meta‐frontier approach to measure technical efficiency and to investigate the effects of farm size on the technical efficiency in China's broiler sector. Empirical results show a positive association between farm size and technical efficiency in China's broiler sector. The medium and large farm sizes exhibit increases of 0.058 and 0.160, respectively, in technical efficiency scores, relative to small farms, which have a mean technical efficiency score of 0.722. Results indicate that there are significant differences in technical efficiency across regions. Technical efficiency in the southern region, which is dominated by yellow‐feathered broilers, is significantly lower than that in the northern region where white‐feathered broilers are the dominant species. Also, the technical efficiency scores estimated from the meta‐frontier model vary substantially across farm sizes in the southern region. Increased farm size improves the technical efficiency for yellow‐feathered broiler production.Dans la présente étude, nous avons utilisé l'analyse métafrontière stochastique pour mesurer l'efficience technique et pour déterminer les effets de la taille de la ferme sur l'efficience technique du secteur du poulet à griller en Chine. Les résultats empiriques indiquent qu'il existe un lien positif entre la taille de la ferme et l'efficience technique. Les fermes de moyenne et grande taille affichent une augmentation du pointage d'efficience technique de 0,058 et de 0,160 respectivement, comparativement aux fermes de petite taille dont le pointage d'efficience technique moyen est de 0,722. Les résultats indiquent que l'efficience technique varie considérablement d'une région à l'autre. L'efficience technique dans la région du Sud, où l’élevage du poulet à griller blanc domine, est significativement plus faible que celle de la région du Nord, où l’élevage du poulet à griller jaune domine. De plus, les pointages d'efficience technique estimés à partir du modèle de métafrontière varient considérablement dans la région du Sud. L'augmentation de la taille de la ferme améliore l'efficience technique de la production du poulet à griller jaune.

Technical efficiency and its determinants in China's hog production

China's hog production is undergoing a great transformation due to the soaring demand and changing raising system. Regarding the essential role of pork in Chinese diet, a systematic analysis on the productivity and efficiency of hog production can provide significant implications for policy makers. This paper investigates the productivity and efficiency of hog production and the determinants of technical efficiency in China using a household level panel data (2004–2010). A stochastic frontier translog production function with scaling property in inefficiency term is adopted for hog production analysis, and the determinants of technical efficiency are incorporated in a one-step estimation using maximum likelihood estimation. Our results show that the average technical efficiency of hog production in China is 0.5914. More importantly, we find that specialized farmers have higher technical efficiency than others, and technical efficiency in the eastern region is higher than that in Central and West China.

Nonparametric Optimization of Preference in Technical Efficiency in China

Applying nonparametric path-converged approach, the research innovatively provides the measurement of preference in technical efficiency by the ratio of labor elasticity to capital elasticity and further attempts to realize the optimization of preference in technical efficiency by a strategy of 30% abolishment of initial Drug Addition and a strategy with combination of smoothed governmental fiscal expenditure, which sheds fresh light on promoting hospitals’ efficiency in China from perspective of management engineering. With sample data of provincial public hospitals in Zhejiang Province during period of 200901-201306, the research obtains following conclusions. First, benchmark preference in technical efficiency shows production has shifted from physical capital preference to labor skilled preference in technical efficiency. Second, the changing trend of preference in technical efficiency validates initial Drug Addition and governmental fiscal expenditure pushes and restrains the labor skilled preference in technical efficiency respectively. Third, the strategy of 30% abolishment of Drug Addition will strengthen labor skilled preference in technical efficiency with less promotion intensity of initial Drug Addition. The strategy with combination of governmental fiscal expenditure restrains labor skilled preference in technical efficiency. The facts validate great urgency of raising payments for doctors and nurses so as to promoting efficiency effectively.

Technical Efficiency in China's Agricultural Production in the Period 1985-1995

The paper uses data of 29 provinces in China from 1983 to 1995 to estimates the effects of cultivated land, mechanical area, and market factors such as prices, natural conditions and agricultural investment on agricultural output during this period. The estimated results show that a substantial proportion of the variation of China’s agricultural output during the period 1985-1995 is due to technical inefficiency. The cultivated land, farmers’ agricultural investment, agricultural terms of trade and adverse weather are main reasons that can explain the slowdown of China’s agricultural growth from 1985 to 1995.The findings of the study are significant because they involve problems of urbanization, the property right of land or economies of scales, the terms of trade and environmental degradation, which causes environmental pollution, can influence the sustainability of agricultural production. Therefore, the promotion of agricultural reforms, reducing adverse effects of urbanization and improving technical efficiency will contribute to improving China’s agricultural productivity.