TITLE:
Research on China’s “Lewis Turning Point” and Efficiency Analysis of Each Province—Based on DEA and SFA Methods
AUTHORS:
Shu Liu
KEYWORDS:
“Lewis Turning Point”, Perpetual Inventory Method, DEA, SFA
JOURNAL NAME:
Modern Economy,
Vol.10 No.4,
April
16,
2019
ABSTRACT: Based on the current situation of China’s labor
market, this paper studies whether China crosses the “Lewis Turning Point” in
2009-2017. Research shows that China has not yet entered the “Lewis Turning
Point”. This paper uses the marginal productivity of labor as the criterion for
judging the problem and calculates the capital stock through the perpetual inventory
method to further estimate the production function and the marginal
productivity of labor. Although China has not entered the “Lewis Turning
Point”, due to the heterogeneity between cities, some cities may have entered
the “Lewis Turning Point” in advance. This paper further analyzes the provinces
of China and uses DEA and SFA methods to analyze the efficiency of capital
stocks and labor input in various provinces. The results show that some cities
are inefficient due to excessive labor input. China can transfer labor through
a reasonable labor policy, thereby avoiding labor shortages in some cities and
ultimately improving the efficiency of resource allocation in each province.