toll roads owned by chinatoll roads owned by china

China's road operators left battered by no-toll policy. Subsequently, China underwent miraculous economic growth, during which the rapid development of highway infrastructure played a pioneering role. Industry-level control variables: toll road management expense , toll road maintenance expense , and toll road toll station number .The proxy variable for administrative monopoly is the ratio of the scale of governmental loan-repayment toll highways to the total scale of toll highways, and the ratio of cumulative capital funds for the construction of governmental loan-payment toll highways to the total investment of the toll highway sector; thus, the intersection terms are recorded as and, respectively, in Table 9. E. Velinov, Y. Petrenko, E. Vechkinzova et al., t al.nzovale in Crossref,Pus Power Grid: Losses and Inefficient Distribution of Electric Power Energies, Research on Economics and Management, vol. How China is buying the world. When the administrative monopoly reaches a degree where the MR is equal to the MC, the effect of the administrative monopoly on the toll highway sector is optimal or rather appropriate. The US$668 million project was financed by the state-owned China Communications Construction Company, CRBCs parent company. 514518, 2019. China has the largest number of listed toll roads, and the eight I have listed have a total market capitalization of nearly $18bn. Kenyan President Uhuru Kenyatta on Sunday officiated the commissioning of the expressway, which links the Show publisher information WebThis is a list of toll roads in the United States (and its territories).

For the panel data selected in this paper, the global reference DEA-Malmquist index is used to measure the operational efficiency of Chinas toll roads from 2010 to 2017.

37583769, 2019. A. October 28, 2021. Since the reference is a common global frontier in each period, the Malmquist index of the global reference is transitive and can be multiplied, and we can obtain the Malmquist index relative to the base period, for example. 6, pp. 152161, 2019. On the other hand, the government is unable to function effectively in areas that require government regulations such as environmental protection and franchise regulations. The administrative monopoly is found to increase the debt burden of the toll highway sector and to have a negative impact on the long-term sustainability of the sector. Across different parameter estimation and statistical inference methods, the estimated values and significance levels of the main parameters are approximated to each other. Public data that can be used to measure the operational performance of the toll roads include the 2010 provincial toll road operation data carried out by the Ministry of Transport and five other ministries and commissions in 2011 during the national toll road special clean-up work, as well as the provincial and municipal toll road statistics bulletins from 2013 to 2017. By. 310, no. 1, pp. Average operating efficiency and index decomposition of toll roads in 29 provinces (with 2010 as the base period). G. Duranton and M. Turner, The Fundamental Law of Road Congestion: Evidence from US Cities, American Economic Review, London, UK, 2011. Z. Dan, Research on the Reform of Comprehensive Transportation Management System in Shaanxi Province, Changan University, Beijing, China, 2018. 1627, 2010. 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. Sumatra. [11] and Wei et al. 2, pp. The Chinese government's ownership of

448, no. 8296, 2018. The current operation management system of Chinas toll highways is characterized by one highway by one company and one highway by one management office. Specifically, for each newly built toll highway, an extra branch office or management office is set up under a group company or highway authority; then, toll management stations are set up under the management office, and toll stations are set up under the management stations. 4, pp. 5, no. Z. Q. Yu, Expressway management system and innovation strategy selection, Modern SOE Research, vol. 11, no. And by midyear, if shareholders and government authorities approve, this family-owned foreign firm will own the insurer. We believe a failure to extend or replace these concessions will erode operators' business strength. H. Y. Lu and Y. Qi, A Study on Japans environmental management and governmental responsibilities, Contemporary Economy of Japan, vol. 218, 2019. There exists scale efficiency loss in Chinas toll road industry. 73, pp. (r) at the best online prices at eBay! According to the Outline for Building Chinas Strength in Transportation (dated September 2019), jointly released by the Central Committee of the Communist Party of China and the State Council, the transport sector should adjust its focus from speed and scale to quality and efficiency. The administrative monopoly in the toll highway sector, which manifests itself through one authority for one province or one group company in one province, has caused various problems. J. H. Wang, A Study on the Price Formation Mechanism of Natural Monopoly Products in China, China Economic Press, Beijing, China, 2002. 377, no. The DEA model from the perspective of the black box ignores the internal structure and production process of the decision-making unit (DMU), so the network DEA emerges as required over time. 711, 2000. Currently, you are using a shared account. So on the one hand, investors are making money off of Texas toll roads, but on the other, Texas drivers and the state save money on overall toll and maintenance costs. 4, pp. 1, pp. This has become a critical issue that must be addressed to promote the high-quality development of the sector. Hypothesis 2 is corroborated from the perspective of the sector structure. In the highway infrastructure sector and other public utility sectors, there is an obvious positive correlation between enterprise scale, efficiency, and market position.

24, p. 79, 2017. Song, G. P. Li, and Y. X. Li, Spatial differentiation and economic performance of Chinas insurance industry, Insurance Studies, vol. [18]; (3)The mainstream studies concentrated on the theoretical exploration and empirical measurement of the mechanism of X-inefficiency and degree of efficiency loss. 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. 9, pp. 6879, 2013. Statista.

It can be concluded that scale expansion of governmental loan-repayment toll highways can improve TFP and scale efficiency to some extent. Access to this and all other statistics on 80,000 topics from, Show sources information The authors declare no conflicts of interest. "Distribution of Toll Road Mileage in China as of 2020, by Road Type. Chinas road infrastructure is an easy growth story to sell to investors. This statistic is not included in your account. In China, 95.45% of highways are built on a user-paid basis. Q. Li, P. R. Bai, Y. Chen, and X. Wei, Efficiency evaluation of bus transport operations given exogenous environmental factors, Journal of Advanced Transportation, vol. This is the first time a foreign entity has held so many of our roads in American history. 37, 2015.

22, no.

As a Premium user you get access to background information and details about the release of this statistic. In the United States the concept of private toll roads is gaining renewed interest after decades of inac - C. Xu, The fundamental institutions of Chinas reforms and development, Journal of Economic Literature, vol.

Its now being dubbed the fastest road in America. The empirical test results show that the administrative monopoly at the industry level will increase the debt burden of the toll road industry, whether from the perspective of industry structure or property rights. Therefore we propose: Hypothesis 2. To test Hypothesis 2, the influence of administrative monopoly on toll road operating efficiency, we introduce an intersection term () of administrative monopoly () and toll road scale () into equation (5), obtaining the following model: The strength of administrative monopoly is defined at both provincial and sector levels. In summary, low operating efficiency of the toll road industry has become an important problem that urgently needs a solution in the industry. 1, pp. M. S. Qi, On the entropy effect of public administration systemon the law of decreasing management efficiency, The Journal of Yunnan Administration College, vol. 79, no. Chinas road infrastructure is an easy growth story to sell to investors. China for three decades, creating a close linkage between subnational investment and revenue claims on tolled roads. 21, no. A number of levels and institutions have been set up, and the increase in economies of scale is first shackled by the operating system. 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. B. H. Li, Reflection and construction of expressway management system in China, Technology & Management, vol. You need at least a Starter Account to use this feature. The estimated coefficient of toll road density is 6.678, which is statistically significant at 1% level.

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 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]. 47, no. The influence mechanism of administrative monopoly and economic performance is mainly based on X-inefficiency theory. Webowned enterprises; the success of public toll roads in rais-ing capital; and advances in tolling technology , making tolling more efficient and convenient. Table 9 lists the GMM estimates using panel data. C. H. Rong, Breaking administrative monopoly is the core issue to be solved in railway reform, Transport Research, vol. X. H. Li, J. Q. Qin, and L. Sun, Model empirical study of relationship between dynamic changes of commercial bank total factor productivity and the operating environment, Governance Structure, vol. 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. -. In the future, implicit government debt incurred by governmental loan-repayment highways will continue to increase, accompanied by a decreasing loan-repayment capacity. Credit Analysis of Chinas Toll Road Operators . Subsequent theoretical studies can be summarized according to two aspects: (1) different understanding and interpretations of the status and causes of X-inefficiency, Naughton and Frantz [12], Bi et al. and represent two sets of control variables, among which includes some provincial-level control variables: regional urbanization rate , i.e., urban population/total regional population, regional unemployment rate, , proportion of employed persons in the regional road transport industry , i.e., the employment of the regional road transport industry/the total urban employment population; includes some industrial-level control variables, such as the number of toll gates on toll roads, recorded as , road carrying capacity , i.e., natural logarithm of highway freight turnover, labor value level of highway industry, recorded as , i.e., average wages of transportation, storage, and post/average wages of regional cities and towns. Yet, the long-term profitability of toll-road operators isnt easy to judge.

Hence, the debt risk is emerging. Specifically, the following few aspects could be started: First, it is necessary to redefine the efficiency boundary between the government and the market. Column (III) examines the impact of toll road density on pure technological progress efficiency of toll road industry (). 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. Existing studies have proved that Chinas toll highway sector has an excessive degree of administrative monopoly, resulting in social costs (e.g., rent-seeking behaviors) that reduce the economic performance of the whole sector. The unique management system of toll highways produces the market structure and property rights structure with Chinese characteristics. X. Wei, H. C. Xu, B. Q. Zhang, and J. L. Li, Infrastructure operation efficiency and influential factors in developing countries: evidence from China, Sustainability, vol. Operationally, Chinas toll highway sector is characterized by an administrative monopoly. 5768, 2014. Success factors for financial sustainability of toll road projects: empirical evidence from China September 2020 Transportation Research Procedia 48(2020):1848-1860 More and more scholars realize that the root of improving the operational efficiency of infrastructure lies with the institution [10]. WebS&P Global (China) Ratings www.spgchinaratings.cn October 28, 2020 . From 2005 to 2010, the annual investment was planned to run from 140 billion to 150 billion yuan (17 to 18 billion U.S. dollars), while from 2010 to 2020, the annual investment planned is to be around 100 billion yuan. You need a Statista Account for unlimited access. 266271, 2005. The most famous case is the Indiana Toll Devil is in the details ROADIS disputes such a characterization of its proposed involvement with E-470.

H. C. Xu, P. R. Bai, and J. K. Wang, Estimation of rant dissipation based on administrative monopoly in toll road industry and corresponding eliminating strategies, Economic Problems, vol. Fan and L. J. Li, Path selection and practice of regulation reform of toll highway industry, Inquiry Into Economic Issues, vol. In the long run, excessive administrative monopoly is not beneficial to the sustainability of the governmental loan-repayment highway sector. 7, pp. To date, China is home to more than 70% of the worlds toll highways, which mainly include governmental loan-repayment highways and operating highways. In the demand of reducing fiscal expenditure and improving the efficiency of public service supply, the application of the user-pays in highways is becoming a reform attempt in many developing and developed countries [1]. 133138, 2008. 315, no. 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. 182184, 2014. Each utilizes different billing practices and different billing cycles. R. Faer, S. Grosskopf, and R. Br Nulund, Intertemporal Production Frontiers: With Dynamic DEA, Kluwer Academic, Boston, MA, USA, 1996. 5263, 2015. 30, no. In practice, the excessive administrative monopoly of the toll road industry leads to the coexistence of the offside and the absence of the functions of the government industry authorities. TOKYO -- Beijing's decision to suspend tolls on all roads, bridges and tunnels in China to spur economic activity has left toll operators reeling, with potentially serious impact on local governments. 68, pp. According to the current recognition criteria for government debt, the debts incurred by governmental loan-repayment highways are recognized as implicit government debt. By the end of 2018, Chinas toll highways extended for a cumulative distance of 168,100km, including 93,300km of governmental loan-repayment highways, accounting for 55.5% of all toll highways in the country. 146154, 2019. Implementing the optimization of the property rights structure is an important way to break the administrative monopoly of the industry.

41, no. As the reference of each period is the same frontier, the calculation obtained is a single Malmquist index: Among these, represents the input for period , and the output vector indicates the DEA efficiency value with the global leading edge as the reference plane. WebAlmost all its toll roads, ports and airports remain owned by state or local governments. The use of an administrative monopoly not only incurs transaction costs but also reaps corresponding revenue. 88, no. 1, pp. For the measurement of toll road operating efficiency, the more mature DEA series algorithm is proposed to consider the technological advancement or degradation leading to movement of the production frontier. Earlier this month, in a triumph for Gov. F. H. Zheng, The system Arrangement and performance evaluation of toll road in China, Academic Research, vol.

However, whether it is the network DEA model or the traditional DEA model, they can only process cross-sectional data. 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 39, no. Copyright 2021 Yan Xu et al. Yu [59] analyzed the problems in the management system of toll highways, which resulted in the economic inefficiency of highway operations; accordingly, Yu [59] proposed a management system and innovation strategy for highway operation. 5, pp. 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. 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 Evidently, scale growth and the monopolization of Chinas toll highway sector are backed by nonmarket forces. 7, pp. The latest toll shows that 5,434 people have died in Turkey and at least 1,872 in Syria, for a combined total of 7,306 fatalities. W. D. Wang, Comparative analysis of operation performance of different management systems of expressway, Human Resource Development, vol. 93116, 2018. 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. 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. Therefore, no significant scale effect has emerged in the toll highway sector over a long period. 01:25 Xi sets tone for future Belt and Road development at Beijing forum A. Ahmadabadi and G. Heravi, The effect of critical success factors on project success in Public-Private Partnership projects: a case study of highway projects in Iran, Transport Policy, vol. X. Mao, J. Gan, and X. Zhao, Debt risk evaluation of toll freeways in Mainland China using the grey approach, Sustainability, vol. This is an open access article distributed under the. 4, pp. Designated as the USAs first superhighway, the PA Turnpike was opened to motorists in 1940.