Analysis of the Impact of Local Government Competition on Green Total Factor Productivity From the Perspective of Factor Market Distortion--Based on the Three-Stage DEA model
Abstract From the perspective of factor market distortion, this paper explores the effect and internal mechanism of local government competition on green total factor productivity (GTFP). A three-stage DEA model was applied to measure the GTFP of 30 provinces from 2008 to 2017. Furthermore, the article analyses local government competition and factor market distortions influence on GTFP using the Spatial SDM model and mediation effect model. The statistical results reveal that the spatial correlation of GTFP is significantly present across Chinese different provinces. The growth of GTFP will be significantly inhibited by local government competition. Local government competition can indirectly restrict the improvement of GTFP through factor market distortion. Regional heterogeneity indicates that, in the eastern and central regions, local government competition does not significantly inhibit the growth of GTFP. Moreover, local government competition failed to restrain the improvement of GTFP through factor market distortion. However, in the western region, local government competition not only inhibited the growth of GTFP, but also inhibited the growth of GTFP by causing factor market distortion.