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A case study in China of the influence mechanism of industrial park efficiency using DEA

Author

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  • Yafen He

    (Jiangxi University of Finance and Economics)

  • Zhenhong Zhu

    (Jiangxi University of Finance and Economics)

  • Hualin Xie

    (Jiangxi University of Finance and Economics)

  • Xinmin Zhang

    (Jiangxi University of Finance and Economics)

  • Meiqi Sheng

    (Jiangxi University of Finance and Economics)

Abstract

Industrial parks are important drivers of economic growth and development. In an increasingly globalized economy, inefficient park development hinders high-quality, sustainable regional and national growth. The transformation and upgrading of industrial parks requires an understanding of the influence mechanism of industrial park efficiency. This study provided a theoretical analysis of the impact of land supply and price, park type, management level, and economic location on industrial parks, and clarified the effect of these factors on industrial park efficiency. Using the case study of Jiangxi Province, a typical underdeveloped area in China, we measured the comprehensive efficiency (CE) of 36 industrial parks from 2010 to 2018 employing data envelopment analysis (DEA). Our study’s findings show that the average CE of industrial parks in Jiangxi Province is low, as most of the parks are inefficient and technical efficiency is a shortcoming. The efficiency of national industrial parks (0.785) is generally higher than that of provincial industrial parks (0.516), whereas the efficiency of the high-tech development zones (0.673) is generally higher than that of the economic–technological development zones (0.603). Industrial parks in prefecture-level cities with superior economic locations are more efficient. Among the 36 industrial parks studied, 14 demonstrated inefficient use of funds, and 10 were provincial industrial parks. We found that the supply of low-priced land affects firms’ investment behavior through the effect of price distortion, which leads to inefficiency. Our study’s findings have implications for policy, practice, theory, and subsequent research for the improvement of industrial park efficiency.

Suggested Citation

  • Yafen He & Zhenhong Zhu & Hualin Xie & Xinmin Zhang & Meiqi Sheng, 2023. "A case study in China of the influence mechanism of industrial park efficiency using DEA," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 7261-7280, July.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:7:d:10.1007_s10668-022-02290-x
    DOI: 10.1007/s10668-022-02290-x
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    1. Zhu Li & Jianhe Ding & Tianqi Tao & Shulian Wang & Kewu Pi & Wen Xiong, 2024. "Novel Evaluation Method for Cleaner Production Audit in Industrial Parks: Case of a Park in Central China," Sustainability, MDPI, vol. 16(6), pages 1-18, March.

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