A Stochastic Frontier Model of the Productive Efficiency of Chinese Ports

The Stochastic Frontier Analysis model is applied in the paper to measure the technical efficiencies of Chinese 13 major seaports and the effects of the reforms of administration and ownership as well as the port location and the scale on the technical efficiency. The empirical results show that the technical efficiencies of the 13 ports can be divided into three levels: the first level, Shanghai Port, has a technical efficiency of nearly 0.98; the second level, Dalian, Qinhuangdao, Tianjing, Qingdao, Ningbo and Guangzhou Ports, have the technical efficiencies of about 0.5; and the third level, Yingkou, Yantai, Rizhao, Lianyungang, Shantou and Zhanjiang Ports, have the technical efficiencies of only 0.1. What is more, the ownership reform and the scale of the port have positive effects on the technical efficiency of the ports, while the administration reform and the location have no obvious effects. Thus, in order to improve the technical efficiency of the ports in China, the port industry should continue the ownership reform and promote the port scale.