Study about Different Factor Intensive Manufacturing Agglomeration’s Nonlinear Effect on Efficiency——An Empirical Analysis Based on Negative Externality PSTR Model
WEI Wei, ZHANG Wan-li
School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China
Abstract：
In this paper, based on the provincial panel data of 17 two-digit manufacturing industries from 2005 to 2011 in China, manufacturing industries are classified according to their production factor intensity. Different factor intensive manufacturing agglomeration’s nonlinear effect on efficiency is studied with the tool of undesirable output data envelopment analysis (DEA) and nonlinear smooth conversion panel methods (PSTR).The empirical results show: (1) The efficiency varies widely on condition that environmental pollution is taken as negative external factor. (2) Different types of manufacturing have different relationships between industry efficiency and agglomeration, but they are mostly in nonlinear relationship; Manufacturing industry is divided into three types as agglomeration-promoting type,agglomeration-decreasing type and excessive agglomeration type. (3) Manufacturing industry of excessive agglomeration type and agglomeration-decreasing type illustrate that the bigger agglomeration is not the better, and the negative effect on efficiency should not be ignored. We should attach great importance to problems such as environmental pollution and traffic congestion, and improve the efficiency of China's manufacturing industry.
2015 
