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《Social Sciences In China》 2003-01
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Efficiency Loss Caused by Regional Separation

Zheng Yusheng Li Chonggao  
Reform in China is characterized by regional division of power. Some scholars hold that regional division of power has enhanced market competition while others believe the reform has resulted in regional separation and market distortion. Using an empirical approach this paper resolves the macro technical efficiency of China into three factors: provincial technical efficiency, allocation efficiency of output structure and inter-provincial factor allocation efficiency. The result shows that the first one has fallen sharply since the inception of the reform while the latter two have been rising, reflecting the great loss in efficiency brought about by regional separatism.
【Fund】: 香港特别行政区研究资助局的资助 (项目编号 :HKBU2 0 1 0 0 2H)。
【CateGory Index】: F123
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