Financing efficiency of municipal infrastructure in China: A comparative analysis using DEA-Malmquist and BCC models

• Published in: Multidisciplinary Science Journal Vol. 7; no. 12; p. 2025571
• Main Author: Zhang, Shengnan
• Format: Journal Article
• Language: English
• Published: 01.12.2025
• ISSN: 2675-1240; 2675-1240
• DOI: 10.31893/multiscience.2025571

This study examines the financing efficiency of municipal infrastructure (MI) investment across 31 provinces in China from 2003 to 2022 using an integrated approach which combines DEA-based Malmquist indices with the BCC model, enabling a robust evaluation of the drivers behind MI financing performance. The results indicate a 1.4% overall increase in total factor productivity. However, deteriorating scale efficiency emerges as a critical factor that undermines overall MI financing performance. Furthermore, a redundancy analysis of financing sources indicates that government funds and bonds achieve higher utilization efficiencies compared to bank loans, foreign investments, and domestic loans. Based on these findings, it is recommended that rigorous oversight of dedicated funds and market-based financing mechanisms—particularly bond financing—be prioritized in regions with mature financial markets and robust institutional capacities, while government-led approaches coupled with capacity-building measures may be more effective in less developed areas.