Analyzing the impact of local government competition on green total factor productivity from the factor market distortion perspective: based on the three stage DEA model

This study explores the effect and internal mechanism of local government competition on green total factor productivity (GTFP) from the factor market distortion perspective. A three stage data envelopment analysis (DEA) model was applied to measure the GTFP of 30 provinces from 2008 to 2017. Furthermore, this study analyzes the influence of local government competition and factor market distortions on GTFP using the spatial Durbin model (SDM) and mediation effect model. The statistical results reveal that the spatial correlation of GTFP is significant across Chinese provinces. The growth of GTFP is significantly inhibited by local government competition that can indirectly restrict its improvement through factor market distortions. Regional heterogeneity indicates that in the eastern and central regions, local government competition does not significantly inhibit GTFP growth. Additionally, local government competition failed to restrain the improvement in GTFP through factor market distortion. Moreover, in the western region, local government competition inhibited the growth of GTFP by causing factor market distortion.