Clement Kong Wing Chow

Measuring the technological leadership of international joint ventures in a transforming economy

Abstract Technical efficiency is introduced as an objective criterion for measuring the performance of international joint ventures in China. By using the technique of stochastic production frontier, we compute the estimates of time-invariant and time-varying technical efficiency in four major manufacturing industries in Shanghai. We show that international joint ventures are in general more technically efficient than domestic firms. In addition, the efficiency gaps between the international joint ventures and domestic firms in the industries of textile, machinery and equipment, and electronics and telecommunications equipment are widening in our sample period although the industrial reforms and active technology policies have improved the productivity of domestic firms. However, in the clothing industry, the technical efficiency of domestic firms, especially state-owned firms, is comparable to the efficiency leader, international joint ventures. These results are useful to assess the competitive advantages of international joint ventures in the Peoples Republic of China.

Estimating Technical Efficiencies of Airports in the Greater China: Stochastic Output Distance Function Method vs. Data Envelopment Analysis Method

In this paper, we study the technical efficiencies of Chinese airportsby using multi-output stochastic output distance function analysis. The benefits of this approach are as follows: 1) It allows multiple-output and multiple-input analysis to be conducted in just one equation. However, in single-output production frontier analysis, two stages of empirical estimation are required.; 2) The estimated values of output distance are in fact the technical efficiency scores. We compare and contrast the estimated technical efficiencies computed based on the stochastic output distance function method with those computed based on DEA method. In terms of the ranking of efficiency scores, we conclude that both methods are consistent with each other.

Measuring the Efficiency of Ariports in China with the DEA and Endogenous-Weight TFP Methods.

The study of Chinese airport efficiency has been largely neglected, despite the Chinese civil aviation industrys recent impressive growth. The authors used the Data Envelopment Analysis and Endogenous-Weight Total Factor Productivity methods to study Chinese airport operational efficiency at 41 facilities, including regional airports, regional hubs, and international hubs. The studys empirical results show that among Chinese airports there is a statistically significant operational efficiency variation, and that strongly increasing returns to scale are exhibited by most Chinese airports, especially relatively efficient ones. Accordingly, a significant widening of the efficiency gap between Chinese airports may occur if investment is focused solely on efficient airports. A policy may need to be devised by the Civil Aviation Administration of China, therefore, not only to improve the operational efficiency of major airports, but also to maintain balanced regional airport development nationwide.

Note on the Productivity Convergence of Airports in China

The present paper uses a Malmquist index measure of productivity growth to study the productivity convergence of 25 airports in China during the period 1995–2004. By decomposing the Malmquist index, we find evidence for the convergence of the efficiency level of airports, but not the productivity and technology levels. These results imply that the more productive airports are pushing the frontiers of technology faster by adopting new technology, and that the relative efficiency level of the laggards increases quickly and catches up with the efficiency level of the leaders over time.

Regional development and airport productivity in China

This chapter studies the technical efficiencies of Chinese airports by using a meta-frontier production function model which accounts for airports in different regions accessing different technologies. Our empirical results show that the technical efficiency scores of airports and provincial output in the coastal region are higher than their counterparts in the inland region. However, the technical efficiency scores of airports and provincial output in inland region are steadily increasing while the counterparts of airports and provincial output in coastal region are slowly declining. In addition, our analysis of provincial efficiency changes shows that airport productivity has a positive and statistically significant effect on the technical changes of provincial output. Our results partially confirm the success of the government policy of promoting airport construction and development in the western inland region.