Technical, allocative and cost efficiencies of Chinese ports

Abstract

This paper reports on empirical studies of the technical, allocative, and cost efficiencies (CEs) of Chinese ports based on the panel data of 16 listed port corporations from 1998 to 2011 by means of Bayesian Inference and Markov Chain Monte Carlo methods. An error terms approach is used to resolve the Greene Problem in the estimation of allocative efficiency. The results show that the technical efficiencies have tended to decline in most ports. Inputs to R&D and improving management level are insufficient to offset this decline. Seaports have higher CEs than river ports. Ports with higher container cargo proportion have higher CEs. Ports with more than 50% of shares owned by the State have higher CEs.

Keywords:

• technical efficiency
• allocative efficiency
• cost efficiency
• translog cost system
• Bayesian inference
• MCMC

Acknowledgments

We would like to thank the Editor and two anonymous referees for their valuable suggestions.

Additional information

Funding

This work is supported by the National Social Science Foundation of China [grant number 11CGL077]; National Science Foundation of China [grant number 71402095], [grant number 71402096]; the Innovation Program of Shanghai Municipal Education Commission [grant number 15ZS046]; and Shanghai Maritime University Research Project [20130442].