Research Of The Chinese Provincial Government Efficiency

In this paper, we choose output index from the infrastructure, government services, and economic performance,and input index from the human investment,financial investment and the gray-trade cost.Combined with the characteristics of our government,this article calculate the Malmquist productivity index and government efficiency values of30mainland provinces(excluding Tibet) in China through the Data Envelopment Analysis approach, the research comes to the conclusions a whoe, the Malmquist index of Chinese local government between2001-2009show an average downward trend and the values is less than1in the most years.The values of eastern areas is the highest, while the western region is afterwards immediately, which reflects the catch-up effectthe citise of the lowest value are the central regions.From the specific views, the decrease of Malmquist productivity index is mainly due to the low technology values, which requires the full attention of local government to solve technical problems and improve the efficiency of the total factor productivity.The studies of the local government efficiency show that the values present a rise trend. Among these provinces,Hainan is always hold the first place, Ningxia and Qinghai immediately afterwards,at the same time,the government efficiency raking of economical developed eastern regions,such as Beijing、Shanghai、 Jiangsu^Zhejiang> Guangdong and so on,is in the rear, while the ranking of some economical backward areas are previous.The main reason contributing to this phenomenon in economically developed regions is that,the quantity of output greater than backward areas, but although greater investment is the cost. In addition, the central system of transfer payments tend to backward areas, making the backward regions into the local government to spend less that local residents can provide better public goods and public services, so more efficient government,and the high degree of fiscal decentralization in economically developed areas also limits the local government efficiency.At the last,this paper analyses the relevance between government and fiscal decentralization、transfer payment system through the method of conventional panel data model and spatial panel data model.The results shows that:compared to the traditional panel model, spatial panel data model is more accurately to simulate the correlation between these variables, it suggests that spatial factors does play a role in the analysis of local government efficiency.In the spatial panel data models,the spatial fixed effects error model is the best choice.Regardless of the traditional panel data model or spatial panel data model, the regression results show a significant negative correlation between fiscal decentralization and the government efficiency and a significant positive correlation between transfer payment system and the government efficiency, and compared with the spatial panel data model, the traditional panel data model underestimated the negative influence of fiscal decentralization on the government efficiency and the positive impact of GDP the government efficiency.