# American Institute of Mathematical Sciences

## The stochastic frontier analysis of the continuous data platform development's influence on industrial economy- a case study of China's Guizhou province

 1 The School of Accounting, Guizhou University of Finance and Economics, China 2 Department of Politics and Economics, King's College London, United Kingdom 3 Department of Accounting, Wenzhou Business College, China

*Corresponding author: Jie Yang

Received  April 2019 Revised  May 2019 Published  February 2020

This study utilizes the city-level continuous data in Guizhou Statistical Yearbook 2011 and 2014. From the perspective of production performance evaluation and governmental subsidies, the study discusses the influence of data platform development on the urban industrial efficiency of Guizhou Province. In order to further analyze the impact of big data industry policies or related developments on Guizhou, this paper applies stochastic frontier analysis (SFA) to estimate the data. It is found that investment factors such as fixed asset investments, employed population in the information industry and government's expenditures in science and technology have significant impact on output values. After comparison of efficiency values among different regions, it turns out that the Qianxinan Buyi and Miao Autonomous Prefecture has the highest overall economic efficiency; Bijie City has the strongest increase in performance between 2011 and 2014, followed by Qianxinan Buyi and Miao Autonomous Prefecture.

Citation: Huabing Wang, An Li, Jie Yang. The stochastic frontier analysis of the continuous data platform development's influence on industrial economy- a case study of China's Guizhou province. Discrete & Continuous Dynamical Systems - S, doi: 10.3934/dcdss.2020265
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##### References:
The definition of variables
 The year of 2014 Amount Unit Definition Governmental expenditure on science and technology 44.34 Million RMB Spending from the government and other relative departments to support science and technology activities Employed population in the information industry 32921 Person The number of the people employed in the information industry in Guizhou Province Fixed asset investments 8778.4 Million RMB The process in which an investment entity advances money or materials to obtain operational or service fixed assets Source: collected by this study
 The year of 2014 Amount Unit Definition Governmental expenditure on science and technology 44.34 Million RMB Spending from the government and other relative departments to support science and technology activities Employed population in the information industry 32921 Person The number of the people employed in the information industry in Guizhou Province Fixed asset investments 8778.4 Million RMB The process in which an investment entity advances money or materials to obtain operational or service fixed assets Source: collected by this study
OLS results
 The interpreted variables: The logarithm of the regional production output value Coefficient Standard error P value The logarithm of governmental expenditures on science and technology 1.332 0.244 0.00 The logarithm of the employed population in the information industry 0.985 0.310 0.00 The logarithm of fixed asset investments 0.311 0.160 0.051 Constant term 15.401 1.899 0.00 The number of samples 176 R2 0.717
 The interpreted variables: The logarithm of the regional production output value Coefficient Standard error P value The logarithm of governmental expenditures on science and technology 1.332 0.244 0.00 The logarithm of the employed population in the information industry 0.985 0.310 0.00 The logarithm of fixed asset investments 0.311 0.160 0.051 Constant term 15.401 1.899 0.00 The number of samples 176 R2 0.717
Estimation of the overall efficiency of all samples
 The interpreted variablesthe logarithm of the regional production output value Coefficient Standard error P value The logarithm of governmental expenditures on science and technology 1.256 0.041 0.00 The logarithm of the employed population in the information industry 0.142 0.084 0.092 The logarithm of fixed asset investments 0.021 0.058 0.719 Constant term 11.394 0.184 0.00 sigma_v 0.092 0.008 sigma_u 0.217 0.013 The number of samples 176 The value of $\lambda$ 2.363 0.019 Log likelihood 258.275 Source: collected by this study
 The interpreted variablesthe logarithm of the regional production output value Coefficient Standard error P value The logarithm of governmental expenditures on science and technology 1.256 0.041 0.00 The logarithm of the employed population in the information industry 0.142 0.084 0.092 The logarithm of fixed asset investments 0.021 0.058 0.719 Constant term 11.394 0.184 0.00 sigma_v 0.092 0.008 sigma_u 0.217 0.013 The number of samples 176 The value of $\lambda$ 2.363 0.019 Log likelihood 258.275 Source: collected by this study
Descriptive statistics of efficiency values
 2011 average 2014 average Value added Guiyang City (samples20) 0.756 0.842 0.086 Liushuipan City (samples8) 0.772 0.840 0.068 Zunyi City (samples28) 0.755 0.829 0.074 Anshun City (samples12) 0.753 0.824 0.071 Bijie City(samples16) 0.762 0.857 0.095 Tongren City (samples20) 0.798 0.858 0.060 The Qianxinan Buyi and Miao Autonomous Prefecture (samples16) 0.785 0.862 0.077 The Qiandongnan Miao and Dong Autonomous Prefecture (samples32) 0.769 0.835 0.066 The Qiannan Buyi and Miao Autonomous Prefecture (samples24) 0.735 0.824 0.089 Source: collected by this study
 2011 average 2014 average Value added Guiyang City (samples20) 0.756 0.842 0.086 Liushuipan City (samples8) 0.772 0.840 0.068 Zunyi City (samples28) 0.755 0.829 0.074 Anshun City (samples12) 0.753 0.824 0.071 Bijie City(samples16) 0.762 0.857 0.095 Tongren City (samples20) 0.798 0.858 0.060 The Qianxinan Buyi and Miao Autonomous Prefecture (samples16) 0.785 0.862 0.077 The Qiandongnan Miao and Dong Autonomous Prefecture (samples32) 0.769 0.835 0.066 The Qiannan Buyi and Miao Autonomous Prefecture (samples24) 0.735 0.824 0.089 Source: collected by this study
multicollinearity check for variance inflation factor (VIF), heteroscedasticity check for Breusch-Pagan test
 Dependent variable The logarithm of the regional production output value The logarithm of governmental expenditures on science and technology 1.40 The logarithm of the employed population in the information industry 2.95 The logarithm of fixed asset investments 1.19 Constant term 1.22 Mean VIF 1.86 Breusch-Pagan test ($H_{0}$: Constant variance) 0.4155
 Dependent variable The logarithm of the regional production output value The logarithm of governmental expenditures on science and technology 1.40 The logarithm of the employed population in the information industry 2.95 The logarithm of fixed asset investments 1.19 Constant term 1.22 Mean VIF 1.86 Breusch-Pagan test ($H_{0}$: Constant variance) 0.4155
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