The Productive Efficiency and Regional Disparities of Public Capital and Private Capital in China

Based on the data from 1994-2008, this paper estimates the output elasticity of public capital and private capital on each quantile point in every province in China. The main findings are as follows: In China, the output elasticity of private capital is larger than that of public capital, and the coefficients of the former elasticity are all positive and significant; the coefficients of the latter elasticity are positive in most provinces in eastern and central China, while those are basically negative in western China. There are huge differences in output elasticity of public capital and private capital across the whole country, and the characteristics of their movement are also dissimilar in different point of conditional distribution.