Economic openness and technical efficiency - A case study of Chinese manufacturing industries

This paper presents a study of the technical efficiency of industries in a transitional economy: China. Using data for 28 manufacturing industries acr oss 29 provinces and the Data Envelopment Analysis approach, the technical efficiency of each industry is measured and compared across regions and pro vinces. The determinants of differential technical efficiency performance a re analysed, with a particular focus on the impact of trade orientation and foreign investment. Trade openness is found generally to have a positive e ffect on technical efficiency. JEL classification: C6, D2, O4, and O5.