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Vol. 16, Special Issue, November 2012, pp. 243-254

 

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The Total Factor Productivity Growth of the Municipal Water Industry in China
 

WANG Fen

Zhejiang Gongshang University, Zhejiang Ocean University,

No.18 Haiyuan Road Dinghai District Zhoushan Zhejiang China, 316004, China

Tel: 13567656834, 0580-8180411

E-mail: worphan77@163.com

 

 

Received: 11 September 2012   /Accepted: 11 October 2012   /Published: 20 November 2012

Digital Sensors and Sensor Sysstems

 

Abstract: This article regards the provincial districts’ municipal water industry in China as the research object, uses stochastic frontier production function model and analyzes its total factor productivity growth and decomposition during 2001-2009. It is found that technology progress plays a dominant role in the rise of TFP, scale efficiency is a complementary one, and technology efficiency change plays a negative role. The research shows: the municipal water industry in China should be changed from the idea which thinks capital investment is very important and neglects labor investment; it needs more labor investment, especially technological and managerial talents in order to improve productivity.

 

Keywords: Municipal water industry, privatization, Technical efficiency, Stochastic frontier analysis, International Review on Computers and Software

 

 

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