An evaluation on performance of rural eco-environment public expenditure of Chinese local governments : theoretical and empirical analysis

Abstract

This paper presents an empirical analysis on Chinese local government rural eco-environment public expenditure performance in 2003―2006 with the method of non-parametric data envelope analysis-malmquist (DEA-Malmquist). The basic conclusion is: first of all, Inner Mongolia, Jiangsu, Zhejiang, Hainan, Tibet, Shanxi, Ningxia and Shanxi, Heilongjiang, Shandong and Gansu are the benchmark units, while Guangdong, Jilin, Liaoning, Guangxi, and Guizhou provinces are far from the frontier and inefficient in fund allocation and management. Secondly, in the entire Chinese local government, the technical efficiency of fiscal support to rural eco-environment investment during 2003/2004 and 2005/2006 was improved and stable, while it degenerated in 2004/2005. Finally, there are 23 provinces in China that have growing and stable technical efficiencies in rural eco-environment public expenditure.

Keywords

sub-national fiscal / rural eco-economy / performance evaluation / data envelope analysis (DEA)