The Comparative Study on Efficiency of the Large-sized Cities in Korea and China

This study measures the efficiency of the Korean and Chinese largesized cities and then explores implications about two countries‘ cities efficiency. We apply two approaches to measure the efficiency, DEA (data envelopment analysis) and SFA (stochastic frontier analysis). Main finding facts of this paper are as follows. (ⅰ) Korean cities have IRS trends, but Chinese cities have DRS trend during the last 10 years. (ⅱ) Beijing showed relatively lower efficiency in both DEA and SFA models. (ⅲ) In Korea, also Seoul‘s efficiency values are relatively low in SFA method, but relatively high in DEA method. (ⅳ) The efficiency of two Korean cities — Busan and Daegu — has been decreasing over time in DEA and SFA model.