중국 지역경제의 수렴성 및 효율성 결정요인 분석

Technical Efficiency and Convergence in Chinese Provincial Economies

This study investigates the technical efficiency of 30 Chinese provincial economies and its determinants during the period of 1995-2007 using the stochastic production frontier model with inefficiency effects. The principal findings of this study are as follows. First, likelihood-ratio test to investigate the validity of the model indicates that model for technical inefficiency effect is significant component in the stochastic production function. Second, the average technical efficiency during this period is about 65%. and thus Chinese economies is producing 35% less than the achievable potential output. Technical inefficiency is negatively associated with the amount of foreign direct investment and foreign trade reflecting that foreign-funded enterprises have played important roles in technology transfer and improvement of quality of capital. Third, while some costal provinces including Beijing, Shanghai and Guangdong have gained in terms of technical efficiency, majority of Chinese provinces have shown deterioration in efficiency levels during the period of 1995-2007. Impact of Asian crisis is reflected in provincial economies via technical efficiency, and western and central provinces suffer from the crisis more than the eastern provinces widening imbalance in efficiency among western, central and eastern provinces. Finally, although the findings in this study provide some insight into efficiency performance in Chinese provincial economies, measurement of efficiency still has potential sources of bias due to limitations on availability of more detailed data. Therefore further research with a variety of data sets and methodologies is called for.