The Analysis On The Economic Growth Efficiency Of Inner Mongolia Based On SFA And DEA

Recently, rapid growth of Chinese economy has been focused on all the world; meanwhile, at home, the same condition has happened to the Inner Mongolia. Everything is the combination of quality and quantity ,with no exception of Economic growth. In order to gain a full understanding, we should study economic growth from two layers of both quality and quantity. Positive analysis should be based on economic theory and the conclusion from it can make real decisions and actions more reasonable. Therefore, the dissertation makes the theory of economic growth, positive analysis and real decisions and actions become a body .First, the dissertation shows the survey of economic growth theory and defines technical efficiency, from Marxism economic growth theory to modern western economic growth theory (including Harrod-Domar model, Solow model and neo economic growth theory), mainly talking about the factors affecting economic growth and means of economic growth. At the same time, it has touched some understanding about factors promoting economic growth coming from some western scholars and Chinese one. The course of economic growth theory changes show that scholars have preferred the quality aspect of economic growth to the quantity aspect of it(That means economic growth mainly depends on capital and labor inputs).The effect of technical factors has been focused on .The performance applying technical advance to economic activities is making activities'level and efficiency improved .Technical efficiency acts as an important aspect of economic efficiency measurements. Further more, this reflects that technical efficiency is as important as technical advance. Second, the dissertation uses two methods, SFA and DEA, to calculate TE values of economic growth in Inner Mongolia based on 30 provinces'panel data from 1999 to 2008. The former of two methods is parameter method and the latter is non-parameter, which have different calculating logistics .Because both of two methods are used for calculating comparative efficiency, the dissertation gives specific TE values and their rank numbers in China. The result shows: TE values using SFA is smaller than ones using DEA and their rank numbers of ten years in Inner Mongolia are always the 17th ,belonging to the middle and worse, which implies its changes are similar to other provinces .The rank numbers using DEA is worse than ones using SFA from2003 to 2008, especially lately falling behind most provinces of all the nation. However , the results of two methods converge from 2006 to 2008.The common result using SFA and DEA is that TE value is decreasing along with changes of time. Indices of technical advance applying DEA based on Malmquist are lesser than 1 except the year of 2004,which shows no sign of technical level being improved. We can make a conclusion that we should worry about the quality of Inner Mongolian economic growth and should not be optimistic about rapid economic growth. Meantime, the dissertation pays attention to the layer of quantity of Inner Mongolian economic growth., by means of calculating increasing rate comparing to the last year. The speed of economic growth in Inner Mongolia is faster comparing to other provinces, which ranks number 1 from 2003 to2008 .Increasing rates of capital are larger than increasing rates of GRP, whose rank numbers are similar to each other .A key characteristic of input-orientated economic growth is that increasing speed of capital is faster than increasing speed of GRP. Therefore , the conclusion from positive analysis finally shows that rapid economic growth of Inner Mongolia mainly comes from a large quantity of capital input and energy consumption, belonging to input-orientated economic growth.. Some guiding suggestions are supplied in the end.