Calculation, Comparison And Convergence Analysis Of China’s Regional Industrial Technology Efficiency

Since China carried out reform and open policy, the national economy of China maderemarkable achievements. China’s Gross Domestic Product growth rate keeps a high speed at10percent. Paul Krugman, a famed American economist, holds the view that East Asia’seconomic growth depended on the investment of resources without good quality. This opinionhas caused a discussion in academia.Regard as a key power base, industry takes a important position in China’s economic., Tosave energy and to improve efficiency of resource become the consensus of the economicsustainable development of China, especially under the situation of resources and energyconstantly dried up in recent years. How to improve economic technical efficiency and tomake reasonable use of resources becomes one of the most important problems in China’seconomic development.Based on the logarithmic Cobb-Douglas production function model, this article using thestochastic frontier analysis method, measures the technical efficiency of thirty provincialadministrative units from1996to2010. On this basis, we compare and analyze the level oftechnical efficiency of different regions of China, and get the following conclusion:(1) Thetechnical efficiency of China holds steady as a whole with slight decline;(2) The technicalefficiency of different regions of China exists significant difference, and the gap betweenregions becomes continually extending.The first part of this article introduces the current situation of the study of technicalefficiency. In the second part, this article stated the method of stochastic frontier analysis, andCobb-Douglas production function, and then we introduce the data source and treatmentmethods. In the next part of this essay, we list the calculation results and give thecorresponding analysis. In the fourth part, we put forward suggestions to improve thetechnical efficiency and reduce regional difference. In the last part of this paper, wesummarize the research conclusion and points of view, and to further research is discussed...