Measurement and Analysis of China’s Industrial Technical Efficiency

This paper uses the stochastic frontier analysis to analyze the China’s technical efficiency on the basis of 280 cities from 1998 to 2015. The empirical results indicated that: the average technical efficiency of China’s industrial was increasing steadily in the past 18 years. The technical efficiency of east, middle and west regions are quite different: the east regions mean technical efficiency was higher than middle area about 27.3%, or higher than west area about 35.9%. In addition, the marketization process, R&D expenditure, education investment have a positive effect on the technical efficiency, but the FDI has a negative effect on eastern technical efficiency, which may due to the entry of FDI in eastern areas do not play a comparative advantage at the present stage.