By Liu Peilin　

Date: 2004/09/24

Abstract:    

Data envelopment approach is used to analyze 21 state-owned manufacturing sectors above designated scale in 30 provinces, the result shows that with no additional input in production, the output can increase by 5% to those enterprises, if only the distortion in output structure can be corrected, and if the distortion in input distribution across the regions can be corrected. From a cross-region perspective, it can be seen that the output structure distortion in the central and western regions is worse than in the coastal areas in the eastern region. The implication is that breaking local protectionism and mending market segmentation is an important access to organizing cross-regional development in an overall pattern.