Research on Total Factor Productivity of Chengdu-Chongqing Urban Agglomeration Based on DEA-Malmquist Index

Abstract

In recent years, the state has proposed development models based on urban agglomerations, such as the Beijing-Tianjin-Hebei urban agglomeration, the Yangtze River Delta urban agglomeration, the Guangdong-Hong KongMarco Greater Bay Area, and the Chengdu-Chongqing urban agglomeration. The paper is based on the DEA-Malmquist index method. By empirical analysis of the total factor productivity of the urban agglomerations, it is mainly concluded as follows: first, the total factor productivity of Chengdu-Chongqing urban agglomeration increased by 0.8% per year during 2006-2016. The Total Factor Productivity Index showed volatility and reached a wave bottom of 0.878 during 2008-2009 and a peak of 1.163 during 2010-2011. Through this series of fluctuations, it can be found that changes in total factor productivity are closely related to the changes in technological progress and scale efficiency. Second, there are 9 cities with improved total factor productivity accounting for 56.25% of the total sample. However, the technical improvement between the nine cities is not balanced. The city with the largest improvement in the total factor productivity index has reached 8.5%, and the largest decline has been -5.2%. Only three cities have achieved technological progress and improved technological efficiency. It accounts for 18.75% of the total number of samples, and there is still a distance from the general improvement of the technical level of Chengdu-Chongqing urban agglomeration. At the same time, this paper also finds that for cities in Chengdu-Chongqing urban agglomeration where the efficiency of total factor technology has not improved, technical efficiency and technological progress have negative effects. The double reverse effect makes the TFP index lower than 1. Keywords—DEA; Malmquist index; total factor productivity; Chengdu-Chongqing urban agglomeration