Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245293 
Authors: 
Year of Publication: 
2020
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 8 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2020 [Pages:] 1-21
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study examines the spatial productivity and efficiency spillovers of Chinese provinces using a spatial Durbin production frontier model that accounts for persistent and transient efficiency using a panel dataset of Chinese provinces from 1985 to 2017. The role of spatial effects is often overlooked in the literature, yet technological progress can spillover and diffuse from provinces and promote regional growth. The spatial Durbin production frontier model allows for the decomposition of direct and indirect (spillover) total factor productivity (TFP) growth, as well as the gross direct and indirect efficiency of the respective provinces. The estimated results show that spatial productivity and efficiency spillovers are positive and lead to higher productivity growth. On average, indirect effects provide an additional TFP growth of 3.1% and an additional efficiency spillover of 18.98%. However, the estimated results also show that TFP growth is declining over time and there is room for efficiency gains if persistent efficiency is increased. These should be addressed through further reforms and policies that promote sustainable growth.
Subjects: 
China
productivity
efficiency
spatial regression
spillovers
TFP
JEL: 
C23
O49
R11
O47
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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