Efficiency of the Chinese Ocean Economy within a Governance Framework Using an Improved Malmquist-Luenberger Index

Ding, L.; Zheng, H., and Zhao, X., 2018. Efficiency of the Chinese ocean economy within a governance framework using an improved Malmquist-Luenberger index.This study provides a novel idea to assess the ocean economic efficiency in a governance framework. Using an improved Malmquist-Luenberger index method, this study estimates and decomposes the total factor environment-energy-governance performance of 11 coastal regions over 2002–2014. Furthermore, it adopts the Moran's I method to investigate the spatial structure among these coastal regions. The results show that China's ocean economy performs well on the economic front, while the introduction of governance behavior slows down the total factor environment-energy-governance performance growth between 2010 and 2014. This indicates the 12th Five-year Plan (FYP) about restoration of marine ecosystems and protection of marine reclamation activities has made certain achievements. Moreover, technical progress is the dominating contributor to ameliorate the total factor environment-energy-governance performance. The value of Moran's I shows that there is a significant spatial clustering effect on total factor environment-energy-governance performance. However, the governance policies for ocean economy have resulted in an unstable spatial structure, since there are many uncertain treatment effects, and there is excessive competition in local markets. In the future, both the state and local governments should insist on internalizing the cost of pollution treatment through technology improvement and market reform of marine resources.