An Empirical Study On The Effciency Of China’s Regional Economy

In 2015,China’s GDP growth rate was 6.9%.It was the first time that the growth rate was less than 7% in nearly 6 years. China economic growth rate is slowing down. The extensive economic development mode is out of time. Our country must change the mode of economic growth and improve the level of output efficiency. So the research on the efficiency of our country’s economic output is very necessary. In this paper, we studies 29 provincial panel data of 1995-2014,applying the trancendecntal logarithmic stochastic frontier model. We divide our country into three regions, and study the economic output and efficiency changes in different regions. The results show that the impact of technological progress on output is non-neutral. The integration of technology and material capital is greater than the effect of the combination of technology and labor on the output. National output efficiency is relatively low, showing a decline-rising-falling-stable trend. The output efficiency of central and western regions is lower than that of eastern region. Import export and foreign direct investment have a positive impact on efficiency, but with the obvious discrepancies in different influence regions. Finally, according to the conclusion of the analysis, we put forward the policy recommendations to improve the efficiency of economic output in the three regions.