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Environmentally sensitive productivity growth and its decompositions in China: a metafrontier Malmquist–Luenberger productivity index approach

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  • Yongrok Choi
  • Dong-hyun Oh
  • Ning Zhang

Abstract

The metafrontier Malmquist–Luenberger (MML) index was used to measure the environmentally sensitive productivity and analyze its decompositions on China’s regional productivity growth. Using the MML index, the environmental undesirable outputs and regional heterogeneities were analyzed simultaneously. The empirical results showed that although China had accomplished rapid growth rate of GDP over the last decade, environmentally sensitive productivity has been relatively constant with a low growth rate. The productivity growth is driven mainly by technology innovation. Regarding the regional differences, the eastern area showed the highest productivity growth, whereas the central and western areas showed productivity deterioration. Some implications and suggestions on the regional differences are proposed based on the empirical results. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Yongrok Choi & Dong-hyun Oh & Ning Zhang, 2015. "Environmentally sensitive productivity growth and its decompositions in China: a metafrontier Malmquist–Luenberger productivity index approach," Empirical Economics, Springer, vol. 49(3), pages 1017-1043, November.
    • Handle: RePEc:spr:empeco:v:49:y:2015:i:3:p:1017-1043
    DOI: 10.1007/s00181-014-0896-5
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    More about this item

    Keywords

    Metafrontier Malmquist–Luenberger index; China; Environmentally sensitive productivity growth; D24; C61; O57; Q43; Q56;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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