||After the 1980s, with the rapid growth of the national economy and urbanization process in Mainland China, the quality of the air is unbelievably terrible in its supportive development strategy in the eastern region of Mainland China. At present, the air pollution in Mainland China “Particulate Matter” (PM2.5) and polluting gases such as ozone, sulfur dioxide, nitrogen oxides and other compound pollutions.|
This thesis explores the technical efficiency of cities economic development in Mainland China under smog, focused on a total of 120 prefecture-level cities in 4 regions from 2006 to 2015. These prefecture-level cities are divided into 3 cities level, involving municipalities, sub-provincial cities and prefecture-level cities. This thesis used the sulfur dioxide and nitrogen oxides as 2 undesirable output variables. First, we used the metafrontier approach by Huang, Huang and Liu’s (2014) studies to measure the efficiency of 120 cities in different regions of Mainland China. Secondly, Chen, Huang and Yang (2009) have proposed “generalized metafrontier Malmquist productivity index (gMMPI)” to apply for this thesis examining and exploring which factors influenced the productivity growth further.
The results shown the four regions are independent of each other. Dalian ranks first in terms of metaftontier technical efficiency (MTE) and technology gap ratio (TGR), with two to ten MTE, mostly belonging to tourist cities or historical culture cities. Furthermore, the last 10 cities of the TGR were dominated by Hebei Province, such as Tangshan, Handan and Shijiazhuang, etc. According to the results of gMMPI disassembly, the main reasons of productivity decline in these four regions are still mainly caused by the potential technological relative change (PTRC) and pure technology catch-up (PTCU). In the metropolitan level, only the prefecture-level cities in the western region shows growth while the others still show the recession. Above all, smog problem does affect the economic growth.