H. Y. Wei, Y. D. Zhang, and B. Lin, Research on the efficiency risk of military civilian integration resources in national defense science and technology industry, Science and Technology Management Research, vol. A number of levels and institutions have been set up, and the increase in economies of scale is first shackled by the operating system. In column (I), the explained variable is the total factor productivity of toll road industry (). C. Y. Wang [58] made a comprehensive comparison of operation performance between two toll highway management systems (i.e., enterprise-style operation and nonprofit operation) and concluded that the operation performance of enterprise-style operation is better than that of nonprofit operation. pp122130, 2019. A. N. Berger and L. J. Mester, Inside the black box: what explains differences in the efficiencies of financial institutions?, Journal of Banking and Finance, vol. Earlier this month, in a triumph for Gov. Out of all commercially operational toll roads, PT Jasa Marga (Persero) Tbk is dominating the market with 60% market share.

The revenue equivalent to about 13 million U.S. dollars was recorded from the 76-km Addis Ababa-Adama toll expressway and the 220-km Dire Dawa-Dewele Implementing the optimization of the property rights structure is an important way to break the administrative monopoly of the industry. 4451, 2019. [27], respectively, evaluated the maintenance performance and operational efficiency of toll roads, and the empirical test showed that administrative monopoly is an important factor influencing infrastructure operational and maintenance performance. 358367, 2016. 6, pp. We believe a failure to extend or replace these concessions will erode operators' business strength. 1623, 2019. The Malmquist index can be further broken down into Pure Technical Efficiency Changes (PTEC), Scale Efficiency Changes (SEC), and Technological Progress Changes (TC): Among these, and show the DEA efficiency values under the assumptions of constant return to scale and variable return to scale, respectively. Y. Crozet and E. Bougna, Towards a liberalised European rail transport: analysing and modelling the impact of competition on productive efficiency, Research in Transportation Economics, vol. S. F. Bi, A review of economic efficiency theory, Economic Review, vol. A. Li [61] investigated the existing highway management system of Jilin Province and offered specific optimization suggestions. As in Figure 1, the average operating efficiency of western provinces and northeastern provinces is smaller than 1, which means there is a decline compared to those in 2010. 4, pp. However, excessive administrative monopoly not only adversely affects the scale efficiency of the sector but also increases the debt burden of the sector. 1, pp. Table 4 shows the parameter estimation results from formula (5), where (I), (II), and (III) are robust least squares estimation of heteroscedasticity using mixed cross-sectional data; (IV), (V), and (VI) are generalized method of moments (GMM) estimates of panel data. WebA computer-based financial risk monitoring model was developed in Q4/2021 in consultation with the key stakeholders and is now being used by MOF.Training workshops to strengthen the knowledge on risk monitoring were conducted for MOF staff and key stakeholders during Q2-Q4/2021. 21, no. This statistic is not included in your account.

496503, 2015.

Chinas adoption of toll roads is good international practice China does indeed have about 70 percent of the worlds total length of tolled roads, but then no other By. L. Castelli, R. Pesenti, and W. Ukovich, A classification of DEA models when the internal structure of the decision making units is considered, Annals of Operations Research, vol. 23, p. 6831, 2019. The classic DEA model cannot process cross-sectional data. As of 2020, toll highways with a passage fee in China, accounted for 85.3 percent of the overall toll 7, pp. At the same time, Moody's has changed the rating outlooks to stable from negative on: - Anhui Transportation Holding Group Co., Ltd.'s Baa1 issuer rating The road, part of state Route 91, was built and run for $130 million by California Private Transportation Company, partly owned by France-based Compagnie Ethiopia has recorded about 13 million U.S. dollars in revenue from two Chinese-built toll roads in a nine-month period, an Ethiopian official said on Friday. There exists scale efficiency loss in Chinas toll road industry. The Malmquist model of the global reference proposed by Pastor and Lovell [69] is a Malmquist index calculation method. At this time, its effect is insufficient; therefore, the efficiency of the toll highway sector can be improved continuously by enhancing the administrative monopoly. However, the positive effect is weakened by significant fiscal decentralization. F. F. N. Van Hulten, Probing the Limits of the Economic Basement in Northwest Europe, American Association of Petroleum Geologists, International Conference and Exhibition, London, UK, 2005. Moreover, the operation mode of one highway by one company has caused huge losses from scale efficiency and directly suppressed any improvement to the economic performance of the toll highway sector. The total costs of the national expressway network are estimated to be 2 trillion yuan (some US$300 billion as rate in 2016). 7, pp. According to traditional economic theories, governmental monopoly of infrastructure can effectively reduce marginal costs and improve economic performance. In addition, X-inefficiency is also applied to the tobacco industry [24], Internet industry [25], family firms [26], National Defense Science and technology industry [27], insurance industry [28], forestry [29], etc. G. Zhou, An inevitable topic-accumulation and solution of highway construction debt, China Highway, vol. 4, pp. S. Wallsten, The future of digital communications research and policy, Federal Communications Law Journal, vol. For the Nairobi Expressway, state-owned China Road and Bridge Corporation will recoup its investment over 27 years through toll charges from motorists. China's toll road sector is facing two lanes of trouble. 1, pp. 34, no. To fill this gap, this study examines the relationship between the administrative monopoly, operation scale, and economic performance, and analyzes the root causes of the operational inefficiency of the toll highway sector, as well as the associated transmission mechanism. The concession expiry clock is ticking for China's listed highway operators. Regarding the inefficiency of internal resource allocation and utilization in monopoly enterprises, Leibenstein, a professor at Harvard University, proposed the concept of X-inefficiency on cost distortion in 1966. The estimated coefficient is positive but not statistically significant. 9, pp. May 29, 2021. 32, no. WebIn 2020, about 43.2 percent of overall toll road mileage in China were state-owned and 56.8 percent were privately owned. Yet, the long-term profitability of toll-road operators isnt easy to judge. 3, 2019. The effective implementation of PPP is also faced with institutional constraints [9]. 2, pp. 88107, 2019. H. C. Xu, X. Wei, B. Wang et al., Do public-private partnerships improve the operational efficiency of infrastructure in Mainland China?, Advances in Civil Engineering, vol. Jiangsu Expressway Company constructs and operates toll roads and bridges in Chinas Jiangsu province. October 28, 2021.

At the provincial level, the ratio of general budget expenditure in local public finance to regional gross domestic product is used as the proxy variable of administrative monopoly [21, 47, 70]. 8186, 2012. 93116, 2018. The country built its first modern expressway 23 years ago a toll road that linked Shanghai to Jiading, a satellite town. 310, no. 3, pp. Therefore, the transformation from scale and monopoly into operational efficiency may encounter obstacles, resulting in the operational inefficiency of the whole sector.

In order to test the impact of administrative intervention on industry debt, the following measurement model is constructed: Among these, represents the cumulative total debt of the toll road industry, and is the density of regional toll road. This is an open access article distributed under the. The network DEA model is deep inside the decision-making unit in evaluating the subsystem, and the difficulty is to give weight to the initial investment [63]. WebThis report draws on extensive review, examination, and international experience to explore five key areas that impact corporatization and privatization policy: the separation of This conclusion has been widely questioned in the practice of Chinas toll highway sector. 895947, 1997. The above data are mainly from the public database of Chinas National Bureau of Statistics, the Wind database, and provincial statistical yearbooks under the China Economic and Social Development Statistics Database. October 28, 2020 . Specifically, huge fund investment is required throughout the construction, operation, and maintenance of toll highways, and toll income alone cannot cover the huge debt burden. 1, pp.

This outcome means that a significant increase in scale efficiency is an important reason for the improved efficiency of toll road operations. Hence, the finalized multilevel operation management system comprises the group company or highway authority, branch office or management office, toll management stations, and toll stations or overload control stations. The results of the robustness test show that we can still obtain parameter estimation results that are highly consistent with those based on the reference after toll highway density (a proxy variable) is replaced. The multilevel analysis and empirical test above show that these factors affect the transformation from sector scale to TFP or scale efficiency. Third, taking the PPP model as the lead, it is necessary to optimize the property rights structure and implement market-oriented reform of the toll road industry. 4953, 2010. Today, local government debt incurred from the investment in infrastructure (e.g., toll highways) has received increasing attention, as it will bring about hidden trouble for local governments. The government should take the initiative to withdraw from specific business areas, weaken the degree and scope of the administrative monopoly, and focus on industry regulation. 333, no. D. Donaldson, Railroads of the Raj: Estimating the Impact of Transportation Infrastructure, NBER Working Paper, London, UK, 2010. Table 6 lists the parameter estimation results of equation (6) when the ratio of general budget expenditure in local public finance to regional gross domestic product is used as the proxy variable of administrative monopoly. J. Rosell and A. Saz-Carranza, Determinants of public-private partnership policies, Public Management Review, vol. ", Ministry of Transport of China, Distribution of toll road mileage in China as of 2020, by road type Statista, https://www.statista.com/statistics/759688/china-toll-road-length-share-by-road-type/ (last visited April 07, 2023), Distribution of toll road mileage in China as of 2020, by road type [Graph], Ministry of Transport of China, October 28, 2021. Moreover, the unique operational organization of the toll road industry with a strong administrative monopoly power is the key to the above problems. Regionally, the average operating efficiency of central provinces from 2013 to 2017 is 1.0524, which is higher than that of the rest of the country. J. Q.
The estimated coefficient of toll road density is 6.851 and statistically significant, which is close to the estimate in column (I). Profit from the additional features of your individual account. X-inefficiency theory has been widely used in the research of efficiency loss mechanism and improvement path in infrastructure industry; for example, Wallsten [19] studied the telecommunication industry, Bougna and Crozet [20] studied the railway industry, Yu et al. Therefore, no significant scale effect has emerged in the toll highway sector over a long period. Q. L. Wang, Y. R. Zheng, Z. Y. Qiu, and X. P. Li, Appropriate degree of paternalism in state-owned economy of toll road industry, Economic Problems, vol. Mitch Daniels, Indianas House narrowly approved his proposal to lease the 157-mile Indiana Toll Road, which spans 71903016 and 71803147) and MOE (Ministry of Education in China) Project of Humanities and Social Sciences (grant no. Stretching across more than 550 miles, the PA Turnpike begins at the state of Ohio and culminates at the New Jersey border at the Delaware River-Turnpike Toll Bridge. Therefore, rationally defining the governments functions in the industry and formulating a scientific reform path is the focus of this research. The operation management system of toll highways refers to the organizational form and the acting mechanism that are intended to ensure the normal operation of toll highways. 2, pp. This study investigates this genuine problem and attempts to find a solution to it. On the other hand, the government is unable to function effectively in areas that require government regulations such as environmental protection and franchise regulations. Chart. The regression results in columns (I) and (III) show that, after an interaction term is introduced, toll highway density has a positive effect on the TFP of the toll highway sector. WebAlmost all its toll roads, ports and airports remain owned by state or local governments. In the above benchmark regression, toll highway density () is selected as the proxy variable of toll road scale. Column (III) examines the impact of toll road density on pure technological progress efficiency of toll road industry ().

Toll highways emerged in China in the late 1980s. 34, no.

Use Ask Statista Research Service, Total length of express ways in China 2009-2021, Number of civil airports in China 2000-2021, Total length of public roads in China 2008-2021, Number of road bridges in China 2010-2021. Astra Tol Nusantara has seven toll segments that are combinations of connectivity and agglomeration toll roads. WebCentral Texas has ten toll roads operated by two separate transportation agencies, the Mobility Authority and TxDOT. [34] examined the effect of the administrative monopoly tariffs on the regional energy efficiency and proved that administrative barriers not only affect the efficiency and competitiveness of enterprises but also affect the final price of goods and services of final consumers. Columns (I) and (II) of Table 6 list the least squares estimation results of heteroscedasticity robustness, and columns (III) and (IV) list the results of the panel generalized method of moments (GMM) estimation. There were to be at least US$1.1 billion worth of new and refurbished toll roads: two connected segments in the Katanga region and another from Kinshasa to the countrys main port of Matadi. 2020, Article ID 8899782, 11 pages, 2020. The estimated coefficient of toll road density is 6.678, which is statistically significant at 1% level.

Hence, local governments are not only passive executors of central policies but also selective executors and sometimes even make local policy innovations [49]. Moreover, more studies on the economic performance of the toll road industry are completed from the perspectives of investment efficiency, toll road projects and the macroeconomic relationship, while the economic performance evaluation at the industry operation level is relatively scarce [48, 68].
How China is buying the world. Get full access to all features within our Business Solutions. The single property right structure under the control of the state-owned government repayment roads severely constrains the resource allocation role of the market mechanism and provides objective conditions for the formation of an excessive administrative monopoly. Kenyan President Uhuru Kenyatta on Sunday officiated the commissioning of the expressway, which links the Across different parameter estimation and statistical inference methods, the estimated values and significance levels of the main parameters are approximated to each other. Business Solutions including all features. But in Anaheim, California, over 30,000 drivers are using the new 91 Express Lanes, a ten-mile automated toll road. 6, pp. 198, no. Evidently, the inherent administrative monopoly in the toll highway sector, if controlled to an appropriate extent, can promote the development of the sector. Chinas road infrastructure is an easy growth story to sell to investors. J. T. Pastor and C. A. K. Lovell, A global malmquist productivity index, Economics Letters, vol. Therefore, the premise of the role of the market mechanism is for the government to restructure its functions and role in the toll road industry. Steven W. Mosher. In order to verify the robustness of the above results, expressway density is used to replace toll road density, and (V) and (VI) in Table 7 reports the estimated results. 4, pp. [56] contend that toll highways should be operated as enterprises through a shareholding reform to prevent various problems (e.g., ambiguity of power and responsibility, confusion about the functions of governments and enterprises, policy conflict between different departments, and inefficiency); Liu et al. The Chinese foreign minister, Wang Yi, pledged in July that China would extend $1 billion in loans for vaccines to Latin American and Caribbean countries. 11, p. 2947, 2020. Evidently, excessive administrative monopoly is the reason that hinders the scale efficiency of toll roads. Following the track of Adam Smith, researchers continue to deepen and verify the understanding of how transportation infrastructure provides an effective support for economic development. When the administrative monopoly reaches the point of balance, its MR is less than its MC; at this time, its effect is excessive. Improving the supply quality and efficiency of public service has always been the core pursuit of government managers and scholars. Operationally, Chinas toll highway sector is characterized by an administrative monopoly. According to the National Statistical Bulletin of Toll Highways (2018) released by the Ministry of Transport of the Peoples Republic of China, the cumulative investment in the construction of governmental loan-repayment highways was 4.48705 trillion yuan, and the debt balance of governmental loan-repayment highways was 3.05361 trillion yuan by the end of 2018. 7, pp. 6, pp. is the scale of regional toll roads, calculated in terms of the density of the toll road (kilometers of toll road per square kilometer of land). Market-oriented reform is the path to improve industry economic performance. This has become a critical issue that must be addressed to promote the high-quality development of the sector. 9, pp. 63, no. 6879, 2013. China's road operators left battered by no-toll policy. Key Takeaways In our opinion, Foreign Company Now Owns Six Major US Tolls Roads News In a short-sighted attempt to fill holes in their budgets, some states have been selling the control over their toll roads to private foreign investors.