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The competitiveness and development strategies of provinces in China: a data envelopment analysis approach

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  • Sung Li
  • Long Zhao

Abstract

This paper explores the development strategies of Chinese provinces by synthesizing the dimensions of a competitiveness index and the Data Envelopment Analysis model. After documenting the close relationship between real GDP per capita and competitiveness, we introduce a production approach to study competitiveness and develop various possible strategies facing a province. In particular, while coastal provinces should consider innovating new technologies and institutions to improve competitiveness, western provinces may adopt a proportional development strategy that simultaneously enhances every aspect of its competitiveness. Further, the proportional development strategy for competitiveness is found to reduce regional disparity. The policy implications from our framework could not have been achieved had the analysis been solely based on the conventional methods of studying the competitiveness index. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Sung Li & Long Zhao, 2015. "The competitiveness and development strategies of provinces in China: a data envelopment analysis approach," Journal of Productivity Analysis, Springer, vol. 44(3), pages 293-307, December.
    • Handle: RePEc:kap:jproda:v:44:y:2015:i:3:p:293-307
    DOI: 10.1007/s11123-015-0445-z
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    Cited by:

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    2. Magdalena Cyrek & Barbara Fura, 2019. "Employment for Sustainable Development: Sectoral Efficiencies in EU Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 277-318, May.
    3. Mitsuhiko Kataoka, 2018. "Inequality convergence in inefficiency and interprovincial income inequality in Indonesia for 1990–2010," Asia-Pacific Journal of Regional Science, Springer, vol. 2(2), pages 297-313, August.
    4. Panagiotis Ravanos & Giannis Karagiannis, 2021. "Using VEA to assess effectiveness in the development of human capabilities," Economic Change and Restructuring, Springer, vol. 54(1), pages 75-99, February.
    5. De Witte, Kristof & Schiltz, Fritz, 2018. "Measuring and explaining organizational effectiveness of school districts: Evidence from a robust and conditional Benefit-of-the-Doubt approach," European Journal of Operational Research, Elsevier, vol. 267(3), pages 1172-1181.

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    More about this item

    Keywords

    Competitiveness; Data envelopment analysis; Proportional and disproportional development strategies; Chinese economy; Regional inequality; C61; D29; O29; O53;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D29 - Microeconomics - - Production and Organizations - - - Other
    • O29 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Other
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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