Regional Technical Efficiency

Economic development means not only expanding the economic scale, but also improving the economic and living quality. So its content is more extensive than economic growth, including not only economic growth, but also economic quality improved. The key to economic quality is technology efficiency and allocation efficiency. Chinese economy has growing at high speed from reforming period. But the economic quality, that is to say, Chinese technology efficiency is low. So technology efficiency is becoming a hot topic in China. At first,the paper has used DEA (Data Envelopment Analysis) to measure Chinese regional technology efficiency from 1997 to 2008; Then used SFA(Stochastic Frontier Approach) to analyse the effect of S&T innovation, reform of marketization, human capital and financial crisis to regional technology efficiency. The conclusions show us that Chinese regional technology efficiency is too low and the east regional technology is higher than other regions. S&T innovation, reform of marketization and human capital are positive interrelated to regional technology efficiency, but financial crisis is negative interrelated to regional technology efficiency. Then analyzed the present situation and the causes of Chinese regional technology efficiency's discrepancy, forecasted its trend. Finally the paper has proposed some suggestions to improve Chinese regional technology efficiency.The main body of this paper is composed of five parts except the foreword and concluding remarks.First part has commented on the empirical measurement of technical efficiency and literature review. Mathematics Programmer Approach, Revised Mathematics Programmer Approach, Deterministic Statistical Frontier Approach and Stochastic Frontier Approach can measure technical efficiency, but each of the four approaches has advantage and drawback. Finally the part has commented literature review of regional technology efficiency.Second part has measured Chinese regional technology efficiency from 1997 to 2008 based by using DEA. The conclusions show us that Chinese regional technology efficiency is low, the regional technology efficiency and growth of it are fluctuating, and there are obvious discrepancies among different regions.Third part has analyzed the effects of S&T innovation, reform of marketization, human capital and financial crisis to regional technology efficiency by using SFA and E-views5.0. The conclusions show us that the increase of S&T innovation, reform of marketization and human capital can improve regional technology efficiency, while financial crisis is prevent regional technology efficiency for improving.Fourth part has the paper has analyzed the present situation and the causes of Chinese regional technology efficiency's discrepancy. The conclusions show us that the discrepancies are obvious and the main factors are the inequalities of industrial agglomeration, S&T innovation, human capital, infrastructure and investing environment, regional financial development and marketization. At last, the paper has forecasted its trend by using E-views5.0. The conclusion shows us that Chinese regional technology efficiency's discrepancy will reduce.Fourth part has proposed some suggestions to improve Chinese regional technology efficiency. The first is to speed up S&T innovation. The second is to improve marketization. The third is to improve human capital. The fourth is to take effective measures to prevent and reduce the negative effect of financial crisis. The fifth is to enhance infrastructure and improve investing environment. The sixth is to speed up the development of regional finance. The seventh is to carry out and implement different regional policies in order to improve regional technology efficiency.