Research On The Efficiency Of Public Investment In Six Provinces Of Central China Based On DEA_Malmquist Index

As an important component of the total social investment, the public investment is an essential tool for the government to regulate the economy, which is the foundation of a country’s economy development. As a result, more attention has been paid to the public investment by the governments and also the efficiency of the public investment has become an issue when governments make decisions relating to the economy. At present, the central China area is in an important period of the economic development and the public investment also play a critical role in this period. However, there are many problems existing in the structure of public investment in the central area of China, which directly influence the efficiency of the public investment and hinder the economic growth. Therefore, the research on the efficiency of the public investment in central China is of practical significance to the economic rise of the central China.This dissertation, from the perspective of input and output, firstly analyzed the input and output of the public investment in six provinces of central China from 2005-2013. And then the public investment’s efficiencies of six provinces were measured statically and dynamically by the methods of the data envelopment analysis(DEA) and the Malmquist index. In the statical measure, the comprehensive technical efficiency, pure technical efficiency and scale efficiency were analyzed among six provinces. Then, by decomposing the malmquist index, the technological progress was introduced and the relationships of technological progress and the public investment efficiency were analyzed. Finally, this research shows some results.(1) The public investment of the central China is increased year by year. Jiangxi province is the fastest growing one and Shanxi province grows slowly;(2) The output of the public investment in six provinces is also increasing. The number of hospital that per 10,000 people hold has the biggest difference that is 25%;(3) The efficiency of public investments in six provinces of central China is very low. And the reason is the scale efficiency is slow;(4) The utilization of funds is improper, so lot of funds were wasted;(5) The output shortage problems were existing among the six provinces in different parts. The situation of shortage in Jiangxi is worst and in Anhui is least;(6) There is little technique to support the public investment, so the efficiency of public investment cannot be improved.