Analysis Of Technical Efficiency Of County Economy Development In Henan Province

ABSTRACT It is after November, 2002 when The Sixteenth National Congress of the CPC announced that the county economy should be boosted that the development of county economy receives great concerns from all circles. The county economy, being an essential part of regional economy, lays the very foundations for the development of national economy. It can be said that there will be no modernization of China's national economy without that of country economy. As a county-economy-based province, Henan gained considerable achievements in the development of county economy after the Opening-up and Reforms. But an unsonous development of county economies prevails in Henan Province caused by the fact that some counties obtain fast economic growth at the expense of heavy waste of resources while other counties endure slow growth in economy with high efficiency of resource use. This thesis paper is in the postion to provide a synthetic analysis of the status quo of technical efficiency of county economy in Henan by establishing a proper evaluation index system with the help of DEA approach. This analysis serves to show factors spawning low efficiency in county economy and makes efforts to offer feasible countermeasures in order to facilitate smooth and healthy development of county economy in Henan.This paper consists of six chapters. In Chapter One, the significance, aims and background of this research are offered. The theory of efficiency is briefly introduced in Chapter Two where the DEA approach and C~2R model is also paraphrased from the economic perspective. Chapter Three begins with confirmation of the concept of development of county economy and the evaluation index system is constructed to cluster county economies according to economic development levels. Some key contents are found in Chapter Four and Five which concerns quantitative analysis of this research. In Chapter Four, a synthetic evaluation index system is built which is able to distinguish a variety of counties in efficiency and an efficiency analysis is conducted concerning all the counties in Henan. Chapter Five offers true efficiency facts in counties of various types. And reasons why efficiency differs are discussed in Chapter Six with the intention to provide some suggestions and policies.Owing to the fact that there are still some incomplete analyses in this paper, I hope more constructive suggestions and advice could be given so that I can make this paper better in the future.