MODELLING TECHNOLOGICAL BIAS AND PRODUCTIVITY GROWTH: A CASE STUDY OF CHINA’S THREE URBAN AGGLOMERATIONS

The technological progress in favor of energy conservation and emission reduction will help increase green total factor productivity and thus mitigate China’s environmental problems. This study adopts the data envelopment analysis (DEA) to measure the total factor productivity (TFP) index of the Chi...

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Bibliographic Details
Published inTechnological and economic development of economy Vol. 26; no. 1; pp. 135 - 164
Main Authors Li, Ke, Qu, Jianying, Wei, Pan, Ai, Hongshan, Jia, Pinrong
Format Journal Article
LanguageEnglish
Published Vilnius Vilnius Gediminas Technical University 01.01.2020
Subjects
Agglomeration
Carbon
Data envelopment analysis
Economic development
Emissions control
Energy conservation
Malmquist-Luenberger productivity index
Operations research
Productivity
technological progress bias
total factor productivity
urban agglomeration
China
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Summary:The technological progress in favor of energy conservation and emission reduction will help increase green total factor productivity and thus mitigate China’s environmental problems. This study adopts the data envelopment analysis (DEA) to measure the total factor productivity (TFP) index of the Chinese three urban agglomerations from 2005 to 2014, and the reasons for its changes are also analyzed. Furthermore, the biases of technological progress from two perspectives of inputs and outputs (including the undersirable output, measured by CO2 emissions) are estimated. Main results are: (i) During the sample period, the TFP of the three urban agglomerations continues to increase, and the main driving force is technological change. (ii) From the perspective of inputs, the Beijing-Tianjin-Hebei prefers to use electricity, whereas the Pearl River Delta and the Yangtze River Delta urban agglomerations tend to use capital and save labor. (iii) From the perspective of outputs, the technological progress of the three major urban agglomerations is significantly biased toward GDP with a slight difference among the three urban agglomerations, which means its technological progress is conducive to reduce CO2 intensity, symbolizing low carbon development. From this point of view, their economic growth shows a low-carbon trend.
ISSN:2029-4913
2029-4921
DOI:10.3846/tede.2020.11329