The Analysis Of Technical Efficiency In The Economic Growth Of Hu-Bao-e

In the recent years, the increasing growth of Inner Mongolian economy arouses thespecial attention in the whole nation. Hu-Bao-e, as a "locomotive" for the development isto create a miracle. This article, according to the World Bank World development report2009presented in3D (that is, Density, Distance, Division) this open perspective to look atthe process and level of economic development in Central region of Inner Mongolia, itsstrengths and weaknesses.Density-economic density, its height makes economic opportunities and wealthcreation capabilities of high and low, thereby indicating that the pace of regional economicdevelopment. Improve economic density based on economies of scale. Distances morereflect interregional market access and ease of access to markets, decide whether theeconomic agents have access to market opportunities. Division is caused by factors such aseconomic, political and cultural barriers and non-identity, it has limited market access. Fordifferent regions of the same country, distance depends more on infrastructure is weak, theavailability and affordability of transport services. However, what is the actual situation ofthe Technical Efficiency in the economic growth?This paper estimates a production function of Hu-Bao-e, and calculates the TechnicalEfficiency by applying the Stochastic Frontier Approach. In order to keep on growthpermanently, continuously and steadily, the means of economic growth must be transferredfrom the exogenous growth depending on high investment and resources consumption tothe endogenous growth leading to benefits based on technology.