IDEAS home Printed from https://ideas.repec.org/a/fec/journl/v1y2006i2p296-310.html
   My bibliography  Save this article

The influence analysis on public expenditure to the technique efficiency of China

Author

Listed:
  • CHEN Xun

    (Economy, Industry and Business Management Institute of Chongqing University, Chongqing, 400044, China)

  • YU Jie

    (Economy, Industry and Business Management Institute of Chongqing University, Chongqing, 400044, China)

Abstract

In this paper, we use SFA to estimate the time-variant stochastic frontier model of 31 cities in China. The results tell us that raising the proportion of public expenditure in GDP can lower the technological efficiency, but raising some parts of public expenditure in GDP can promote the technological efficiency. Its realistic meaning is that it is excellent to turn the public expenditure structure to promote the technological efficiency. We computed the technological efficiency of 31 provinces/cities and the results show that the gap between the eastern region and western region is growing much. Finally, we decompose total factor productivity (TFP) and get the following result: from three regions, the biggest influence factor on technological efficiency is the scales economy. Technological progress and allocation efficiency have a smaller influence. From our results, we suggest that technological progress and allocation efficiency from public expenditure and income be raised to influence the TFP rate of change, and have a more efficient public expenditure.

Suggested Citation

  • CHEN Xun & YU Jie, 2006. "The influence analysis on public expenditure to the technique efficiency of China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 1(2), pages 296-310, June.
    • Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:296-310
    as

    Download full text from publisher

    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0010-9
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    public expenditure; stochastic frontier; TFP; decomposition;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fec:journl:v:1:y:2006:i:2:p:296-310. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Frank H. Liu (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.