Technical efficiency analysis of economic development in four economic regions of China based on infrastructure construction

Abstract

This dissertation intends to estimate the technical efficiency of economic growth among different economic regions of China based on infrastructure construction covering the period of 2001-2019 and to provide useful information for government to reduce regional disparities in terms of economic development. The study is processed with three models, respectively stochastic frontier model (SFM), copula-based stochastic frontier model (CSFM), and copula-based meta stochastic frontier model (CMSFM).

The results of SFM show that the mean technical efficiency of four economic regions is 0.3940. Amid them, the technical efficiency in the Eastern region is 0.4211, the Central region 0.1429, the Western region 0.0854, and the Northeast region 0.9267. The results of CSFM display that the mean technical efficiency of four economic regions is 0.3067. Amid them, the efficiency in the Eastern region is 0.0787, the Central region 0.1016, the Western region 0.1988, and the Northeast region 0.8478.

The results of CMSFM demonstrate that the mean technical efficiency of four economic regions is 0.1335. Amid them, the technical efficiency in the Eastern region is 0.0190, the Central region 0.0353, the Western region 0.0893, and the Northeast region 0.3906.

Overall, the Northeast region has the highest technical efficiency from the results of which model. However, the most economically developed area nowadays, the Eastern region, has the lowest technical efficiencies of development in the SFM and CMSFM.