Sources of investment inefficiency: The case of fixed-asset investment in China

• 成果类型: Article
• 署名作者: Qin, Duo; Song, Haiyan
• 署名单位: University of London; Hong Kong Polytechnic University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2008.06.001
• 发表日期: 2009
• 页码: 94-105
• 关键词: Over-investment; EFFICIENCY; Soft-budget constraint

摘要

This study attempts to measure the inefficiency associated with aggregate investment in a transitional economy. The inefficiency is decomposed into allocative and technical inefficiency based on standard production theory. Allocative inefficiency is measured by the deviation of actual investment from the theoretically desired investment demand. Institutional factors are then identified as part of the driving force of the deviation. The resulting model is applied to Chinese provincial panel data. The main findings are: Chinese investment demand is strongly receptive to expansionary fiscal policies and inter-provincial network effects: the tendency of over-investment remains, even with signs of increasing allocative efficiency and improving technical efficiency. (C) 2008 Elsevier B.V. All rights reserved.