Efficiency gains from regionalization: economic development in China revisited

Abstract This paper uses a DEA model of multi-unit efficiency measurement to investigate the gains from regional analysis of efficient economic development. The model is applied to the Chinese city economic development data used by Charnes, Cooper, and Li in a recent issue of this journal to demonstrate the usefulness of alternative DEA-based measures in economic development policy. Assuming that Chinese cities can cooperate within a region reveals that efficiency gains are possible. This may provide additional information to policy makers in terms of how to direct planned investment. Additional information is provided and traditional DEA model results are also explained within this regional development context.

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