Study Of The Evaluation Of China’s Cultural Industry Development Benefit And Efficiency And Capital Allocation Strategies

Cultural industry is defined as "sunrise industry","green industry", with a hugemarket and a great potential of development. It is in the focus of competition within anew round of regional development. During the2008financial crisis, it has a goodperformance against other industries, which has shown its charm and value. Thetwenty-first century has witnessed the fast pace of development of the culturalindustry. In2012, the total sum of China’s cultural and legal entities related industriesadded value is1.8071trillion yuan,5.25times than that of2004. During2005to2012,the average annual growth rate of the added value is23.19%. The cultural industry isthe internal driving force to build the Chinese Dream and is also a powerful engine toboost the realization of this dream. Rapid development does not mean that there is noproblem. There are still some problems in the process of rapid development ofcultural industries.For example, some good cultural projects have no financialsupport and at the same time, those funds cannot find proper projects. There is amismatch between projects and money and the fund allocation is in lack of reasonablestandards. The government has repeatedly stressed the importance of social andeconomic benefits of cultural industries, yet it is in lack of effective evaluation. Thus,based on these problems,this paper tries to make an evaluation of the social benefits,economic benefits and development efficiency of the cultural industry development.At the same time, it will give a fund allocation strategy based on the evaluation result.Hopefully, it will set a good example of the market-lead cultural industry developmentmodel.On the basis of existing literature and cultural industry developmentinvestigation, cultural industries benefit, efficiency and internal capital allocationmechanism are analyzed on the use of standardized methods in this paper, and verifiedusing the method of empirical analysis; Using a combination of qualitative andquantitative methods, through literature, expert surveys and on-site interviews,efficiency and benefit evaluation index system of regional, industry and enterprisesperspectives is built. Use cluster analysis, correlation analysis and other methods toselect and determine indicators, applying factor analysis, entropy method,superDEA-Malmquist approach to evaluate social benefit, economic benefit anddevelopment efficiency. The development of benefit evaluation system, with the use of correlation and regression analysis of the relationship between efficiency andbenefit and explore the factors of development efficiency. The results are:(1) theefficiency and benefit development of cultural industries in eastern region is betterthan that in the central region, while western region is poorer;three sectors of tenmajor industries, arts and crafts production, production of cultural goods andproduction of special cultural equipment have the highest efficiency, while newspublishing services and cultural arts services industry are the lowest, yet efficiencyand benefit of listed companies also have specific evaluation results;(2) In additionthat development efficiency and social benefits of the industry have no significantrelationship, the development efficiency havs shown a significant positive correlationwith regions, corporate social benefits as well as economic benefits;(3) From theperspective of the overall development of the cultural industry, cultural consumptionof urban residents and the number of cultural industry demonstration base are mainfactor affecting the efficiency of cultural industries; total asset turnover and costmargins significantly affected the cultural industry development efficiency of listedcompanies;(4) cultural industries development benefits contribute significantly toeconomic growth. One unit increase in cultural industries social benefits will drive0.5017unit of GDP growth; while one unit increases in the cultural industrieseconomic benefits will drive0.406unit of GDP growth, which match for both socialand economic benefits development and social benefits as the most important ideasadvocated by government, showing a clear direction for the further development ofcultural industryIn the paper, capital allocation coefficient as well as the capital allocation modelis determined and constructed based on the results of efficiency evaluation; pathoptimization is improved from different perspectives according to the efficiency of theevaluation results; countermeasures of funds allocation optimization are raised fromthe national, local and corporate level, respectively; at the same time, cultural industrydevelopment indicators of cultural provinces and urban cultural industrycompetitiveness evaluation index system are built, providing objective reference inthe actual development process of cultural industries.The research results achieved in capital allocation based on benefit and efficiency,and promoted the process of the development of market-driven cultural industry, andalso solved the problem of asymmetric allocation of funds. These relevant culturalindustries authorities or funds owner can invest according to their owner tendencies, and then based on the evaluation results of cultural industry social bennefits,economic benefits, and development effiency; they can allocate funds either based onindividual indicators, also on the combinations of different indicators. At the sametime, they showes a clear direction of funds allocation in technical efficiency, scaleincreased and technological progress. Particularly, the development of the evaluationsystem can provide help for relevant cultural industry department evaluating andmonitoring the culture enterprises and the funded cultural projects, also can provide auseful reference for the government to adjust the cultural industry developmentstrategy.