Whether The Resources Abundance Influences Economic Efficiency

This paper explores the existence of“Resource Curse”phenomenon among Chinese cities from the perspective of economic technical efficiency rather than from the traditional perspective of economic growth,which is meaningful to the transformation of the regional development mode and policy-making currently.Since technical efficiency is closely related to educational input and innovation-driven development,it's urgent for us to do this research today.We use a nonparametric DEA method to estimate the efficiency of 258 cities over 2003-2012.Then the location-scale regression model is applied to analyze the behavior of the expectation of efficiency scores as a function of the environment variable and time.Besides the traditional full frontier method,Partial frontier methods are also applied to this paper to make it more robust to outliers.We emphasize the usefulness of smoothing over time to better analyze the potential dynamic influence of resource dependence on efficiency,as well as to see the shift of condition efficient frontier over time.Also we find that both resource dependence and time play an important role as influencing efficiency distribution and affecting,to a smaller extend,the attainable production set.According to the empirical study from the prospective of economic technical efficiency,the“Resource curse”phenomenon almost exist among our Chinese cities.Actually,a nonlinear relationship between resource abundance and efficiencies ratio was found.Specifically,a moderate level of resource abundance(about between 12%and 17%)plays a positive role in production efficiency.Otherwise,resource abundance plays a negative role.These findings serve policy making well.Firstly,improving the proportion of the third industry by means of tax and market access to Optimize the industrial structure.Secondly,the policy of sustainable development and protection of resources should be formulated to guide the rational exploitation of resources.Thirdly,the government needs to encourage the development of high and new technology enterprises,formulate preferential policies for the local enterprises actively introducing high and new technology,and pay attention to the protection of innovative small micro enterprises.Finally,the investment policy of the national development should be inclined to the remote areas,to effectively improve the foreign trade capacity of the relatively backward areas,to avoid the obstruction and expand the opening up.