The Nature of Technological Change in the Chinese Hotel Sector

Abstract

This article investigates the role of technological change in the Chinese hotel sector over the period 2005 to 2015. The analysis is conducted at the provincial level and on the star-rating hotel basis. A three-step approach is adopted. First, the Malmquist productivity index and its decomposition into efficiency and technological change is estimated. Second, the significance of each component is statistically tested. Third, the technological change is decomposed to analyze the Hicks neutrality assumption. The findings show that the Chinese hotel sector experienced an overall productivity growth, which is mainly and significantly driven by a technological progress. In most of the cases, the technological change is not neutral, and input and output biases are characterized.