To Explore The Methods Of Technical Efficiency Measurement

When studying area economy level, in addition to consider economic growth, also need to pay attention to the quality of economic growth, which is the standard of the technical efficiency level. The measurement of technical efficiency has important significance. It can not only make the decision makers in understanding the area or enterprise input-output efficiency, but also can find ways to improve the quality of economic growth on the basis of researching factors that influence efficiency of output.This paper estimates the level of technical efficiency of various provinces and autonomous regions from1996to2010years using stochastic frontier model. The production function form is determined as the Cobb Douglas production function. Because this production function assumes that the elasticity of capital and labor as a constant, which compared with the developed countries. It is not applicable to the developing countries like China which is in the high-speed development. This paper introduces the variable coefficient based on the previous model, assuming the coefficient will change as variables, so the variable coefficient stochastic frontier model is more in line with China’s conditions. After the model calculation method is deduced, We use it to measure the value of all regional technical efficiency. In order to compare, the traditional stochastic frontier model and method of DEA which is also often used to measure technical efficiency in various regions of the corresponding years are also used to measure the value of all regional technical efficiency. Then analysis the similarities and differences between the three kinds of method. Finally, this paper research further on the influence factors of technical efficiency, using the technical efficiency value as the dependent variable to establish fixed effect panel data model, we focus on the effect of financial development, industrial structure and foreign economic development to the technical efficiency of China’s regional economy.The main conclusion of this paper:from various regions over the technical efficiency level, Guangdong, Zhejiang and Fujian are ranked in the forefront of technology efficiency, while the level of technical efficiency of Qinghai, Inner Mongolia and Hainan is lower. Further analysis of technical efficiency of East、 Central and West, the technical efficiency declines in turn from East to West. In addition, the level of technical efficiency has a larger increase from1996to2010, but the level of technical efficiency in2002to2005declines in stages. From the results of the variable coefficient of stochastic frontier model, the traditional stochastic frontier model and DEA method, the estimation results obtained certain correction after the introduction of variable coefficient in the traditional stochastic frontier model. The estimated results of DEA model are significantly smaller than the variable coefficient and the traditional values of the stochastic frontier model, and there are significant differences between the three methods. Furthermore, although the results of these three methods exist some differences, but the sorting efficiency between them are consistent. In the study of factors influencing the technical efficiency, financial development can promote the regional technical efficiency improvement. The proportion of the tertiary industry is higher, the more help to improve the level of technical efficiency. The increase of foreign direct investment does not promote technical efficiency. Imports are not conducive to the level of technical efficiency, and there is no significant relationship between export and technical efficiency.