The Technical Efficiency Of Jiangsu Service Industry And Influence Factors: Based On The Stochastic Frontier Analysis

The growth of output is caused by the growth of inputs and total factor productivity. Whentechnical efficiency changes, total factor productivity will also change. Thus how to enlarge thetechnical efficiency is very important for the development of industry. In recent years, along withlabor and capital inputs increasing, the output of Jiangsu services industry has increased rapidly. Inthis situation, whether there exists technical inefficiency with the rapid growth is necessary to studyon.Based on the relevant theory of technical efficiency of service industry, this paper analyses themechanism of how the technical efficiency increasing will promote the output growth of serviceindustry in Jiangsu and also summarizes the factors affecting technical efficiency of service industry.Then a stochastic frontier analysis model was constructed, which uses “one-step way” to estimate thetechnical efficiency of Jiangsu services. Meanwhile, the model also analyses the effect of entrybarriers, agglomeration and specialization of industry, opening up, knowledge and research,ownership factors on technical efficiency of services. In addition, due to the different characteristicsof producer and living services, this paper divides producer and living services in Jiangsu and carriesout stochastic frontier analysis respectively, which examines if the influence of the various factorswill differ on technical efficiency increasing of producer and living services.Several conclusions have been studied out:(1) There exists technical inefficiency of Jiangsuservices and overall the technical efficiency of producer services is higher than that of living services;(2) Entry Barriers and ownership factors may restrict the increasing of technical efficiency, while thelevel of industry agglomeration and specialization, opening up, knowledge and research will expandthe technical efficiency of Jiangsu service industry;(3)Different factors have different effects on thetechnical efficiency of producer and living services in Jiangsu.Finally, based on the conclusions, we propose several suggestions to increase the technicalefficiency and promote the development of service industry in Jiangsu.