Logistics Efficiency Analysis in China Based on Spatial Stochastic Frontier Model

T. W. Ma, D. N. Jiang, & S. Q. Yu

School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China

Cite this paper
T. W. Ma, D. N. Jiang, & S. Q. Yu, “Logistics Efficiency Analysis in China Based on Spatial Stochastic Frontier Model”, Journal of Mechanical Engineering Research and Developments, vol. 39, no. 2, pp. 593-606, 2016. DOI: 10.7508/jmerd.2016.02.039

ABSTRACT: The stochastic frontier analysis has been one of the most widespread techniques for efficiency analysis in many industries. The paper considers eight different models to estimate the efficiencies in logistics industry from 1999-2012 in the mainland of China. The spatial effects and spatial-temporal effects are considered in eight models to account for possible unknown influence across provinces to the output. The Bayesian inference is used to estimate the parameters of the proposed models and the results are compared based on the DIC criteria. The results conclude the spatial-temporal model with latent spatial effect in efficiency is a better choice among eight models.

Keywords : Stochastic frontier models; Spatial-temporal effect; Technical efficiency; Bayesian inference, Spatial effect.

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