Potential Green Gains From the Integration of Economies: Evidence From Mainland, Hong Kong, Macao, and Taiwan in China

The integration of economies always attracts much attention from policymakers and researchers. This paper introduces a novel approach to evaluate potential economic and environmental gains from integrating economies. Based on aggregate production technology and directional distance functions, we reg...

Full description

Saved in:
Bibliographic Details
Published inJournal of global information management Vol. 30; no. 6; pp. 1 - 21
Main Authors Shen, Zhiyang, Zhou, Yiqiao, Bai, Kaixuan, Zhai, Kun
Format Journal Article
LanguageEnglish
Published Hershey IGI Global 01.01.2022
Subjects
Air pollution
Carbon
Collaboration
Cooperation
Developing countries
Economic development
Economic growth
Emissions
Global economy
Globalization
Information management
LDCs
Literature reviews
Nonparametric statistics
Pollution control
Regions
Resource allocation
East Asia
China
Taiwan
Macao
Online AccessGet full text

Cover

More Information
Summary:The integration of economies always attracts much attention from policymakers and researchers. This paper introduces a novel approach to evaluate potential economic and environmental gains from integrating economies. Based on aggregate production technology and directional distance functions, we regard all decision-making units as a whole, allowing free resource reallocation among units. The level of resource misallocation is identified by a structural measure, which is obtained by the difference between overall potential improvement and individual technical inefficiency. Taking China as an empirical example, possible economic output expansions are estimated at 43.2% and 10.1% under convex and nonconvex production technologies, respectively; potential pollution reductions are around 28.4% and 5.1% under convex and nonconvex production technologies, respectively. A significant disparity of structural inefficiencies is detected, indicating a high level of resource misallocation in China. Economic cooperation is vital to promote potential green gains for all provinces in China.
ISSN:1062-7375
1533-7995
DOI:10.4018/JGIM.302654