| The most famous and important ports management system reform occurred in 2002, which decentralized the ports to the local cities. According to the experience, the decentralization process had a positive effect on the ports, port investment has been diversified and the operation had been improved. Those will definitely pull the ports out of the previous embarrass situation, and improve the performance. But we should also pay attention to the problems brought at the same time, such as local protectionism and the out-of-order vicious competition; those negative effects will lower the ports' efficiency, level of service and competition.Technical efficiency is an important economic index which can be used to measure the extension of the production elements input be used properly while under the existing technical level. In this paper, the qualitative and quantitative methods are used together to analyze whether decentralization impacted the resource utilization, which means the technical efficiency of the ports, Meanwhile, the factors that caused the efficiency loss are calculated, so as to provide theoretical evidence to enhance the utilization of resources for the ports.Three major analysis parts are included in this paper. Firstly, the conception and theories of technical efficiency are introduced. At the same time, two common methods, the method of production frontier and non-production frontier method which are used to measure technical efficiency, are presented. Secondly, the history and current situation of ports management system reform are introduced, the positive and negative effect of the reform occurred in 2002 are concluded, and the influence mechanism of the reform exerted on the technical efficiency is analyzed as well. Finally, an empirical analysis is offered by means of SFA. The results show that the decentralization of ports has an obvious positive effect on ports technical efficiency and the efficiency of ten ports as samples have been significantly improved after the reform.
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