| Rural consumers are important forces in stimulating domestic demand. Miningrural market not only can improve consumption level and improve the consumptionstructure, but also can maintain stable economic growth. However, there is asignificant gap between rural and urban residents in terms of consumption level,consumption structure and consumption environment.It is an indisputable fact that rural distribution’s development is seriously laggingbehind, in china. Rural consumable distribution is a direct consumable channel ofrural consumers, and plays a more direct role in leveraging rural market. Therefore,it is necessary for us to study how to development rural consumable distribution.Previous studies suggest that the contribution of capital, labor and other factorsof production to economic growth will gradually decline, and as the share ofeconomic development and scientific and technological progress, and the improvingof efficiency and technological progress as the main content of the TFP will becomethe main driving force of economic development. While improving efficiency is thedriving force and source of industrial sustainable development.In a comprehensive analysis of modern efficiency theories and methods, thispaper studies the development question of rural consumable distribution industryfrom an efficiency research perspective. This paper also reveals the source ofdevelopment of rural consumable distribution, analyses the regional differences ofefficiency in rural consumable distribution industry, and points out the method topromoting the efficiency of China’s rural consumable distribution industry, in orderto maintaining sustainable development of rural consumable distribution industry.The main contents and conclusions of this study are as follows:The first part of this paper analyzes the current situation of the development ofChina’s rural consumable distribution industry. Through collecting previous researchliterature and statistical data analysis, this paper divides China’s developmentprocess of t consumable distribution industry into four stages. The first phase(1949-1952) is a period that public economy and private both are involved in ruralmarket; the second phase (1953-1977) is a planned economy period in rural market;the third phase (1978-the mid-1990s) is a period that rural market transforms fromplanned commodity economy to a market economy; the fourth phase (the mid-90sto now) is a constrained demand of the market economy stage.Through analyzing the history of China’s consumable distributiontransformation, this paper summarizes China’s government took different routes indifferent periods, namely a unified market, market competition, property changingand the introduction of modern distribution organization. From market structure,market behavior and market performance point of view, this chapter also describesthe current situation of China’s rural consumable distribution oginaztion. From theperspective of market structure, China’s rural consumable distribution industry haslow concentration of small-scale, low degree of differentiation and there are moremarket barriers for urban distribution enterprises come into the rural market; from the perspective of market behavior, China’s consumable distribution industry hasmany question such as: low price competition, low product quality, lack ofinvestment and technological progressing slowly; from the perspective of marketperformance, rural consumable distribution originations gains poor performance andlack of profitability.The second part of this paper is theoretical and methodological basis for thewhole paper. Firstly, this chapter combs the previous study on efficiency, differencesof and connections between effectiveness and productivity. Combined with modernefficient theory this chapter gives the definition of distribution industry efficiency.Secondly, this chapter summarizes the previous study on measurement methods ofdistribution efficiency. One method is through establishing efficient evaluationindicators system; while another method is based on the theory of modern efficiencyfound by Farrell (1957), which efficiency measurement methods based on theproduction frontier function. Thirdly, in order to investigate the dynamic changes of trural consumable distribution efficiency, technological progress and the growth oftotal factor productivity circulation decomposition, this chapter also describes theMalmquist Index. In addition, this part concludes the theory of efficiency affectingfactors and previous academic studies on factors affecting the efficiency ofdistribution. Through summarizing the previous studies of factors affectingdistribution efficiency, this paper constructs econometric model in Chapter6.The third part of this paper measures the efficiency of rural consumabledistribution from efficiency index system and DEA method. Firstly, from efficiencyindex system this chapter finds the results followed:(1) China’s rural consumabledistribution industry showed a rapid development trend;(2) Proportion of the ruralconsumable distribution industry in rural secondary and tertiary industries through aquick upgrade to a stable phase;(3) A low degree of organization and small scale ofenterprises in rural consumable distribution industry;(4)The labor efficiency of ruralconsumable distribution industry grows significantly, and special year laborefficiency decline was mainly due to lack of demand caused by deflation whichmakes rural consumable distribution enterprises income decreased;(5)Theprofitability of rural consumable distribution enterprises decline after the reform andopening up in China’s rural market，which is because of that the level of competitionhas intensified. Secondly, from the point of view of the relative efficiency of DEAmethod, we find that there are significant regional disparities in the efficiency ofrural consumable distribution industry, in turn reducing the order of the eastern,central and western regions. Insufficient and redundancy investment coexist incurrent rural consumable distribution industry. The result shows that the increaseinvestment in Liaoning, Shandong, Guangdong, Jiangxi and Guangxi region cannotbring a higher proportion of output. So, we should reduce the number of enterprises,the number of staff and other capital investment, to improve the input-outputefficiency. And Jilin, Heilongjiang, Chongqing, Yunnan, Guizhou, Shanxi, Gansu,Qinghai, Ningxia and Xinjiang increase investment can gain a higher proportion ofoutput. It can be seen that increasing investment to approach consumable distribution industry development had reached a critical state. Some eastern and centralprovinces already in the stage of decreasing scale by expanding capital investment,and increasing output are not a valid option. Most of the regions should improve thequality of investment, and promote efficiency through improved human capital andmanagement level.The fourth part of this paper analyses the change of total factor productivity,efficiency and technological progress from2007to2012in rural consumabledistribution industry based on DEA-Malmquist index model. The result shows thatfrom2007to2012, technological progress is the main support of TPF changes inconsumable distribution industry, but efficiency changes play a role of negativeeffects. During the study period Rural, the TFP of rural consumable distributionindustry increased2.2percent per year on average, the technological progress indexincreased3.3percent per year on average, and the efficiency change index fell by anaverage of1.1percent per year, basically showing a downward trend. In recent years,the TPF growth of rural consumable distribution industry is driven primarily bytechnological progress, Efficiency changes of rural consumable distribution industryconstrained growth in TPF. Eastern TFP growth, technological progress andefficiency changes are better than the central and western, technological progress ofthe major area plays a major role on the TFP growth. In recent years, only theefficiency levels of the eastern region have increased, and the central and westernregions efficiency levels have declined. The efficiency of the central regiondecreased mainly driven by the pure technical efficiency. The decline in theefficiency of the western region because of that the pure technical efficiency andscale efficiency decreased both. Therefore, our government should pay moreattention on promoting technological progress and improving operating efficiencyfor the development of China’s rural consumable distribution industry. This requireslocal governments to vigorously promote enterprise’s management idea,management ability and the technical application ability, make the effectiveness ofthe circulation into fully release, in order to maintain high productivity of ruralconsumable distribution industry. Meanwhile, the government should encouragelearning, imitation and technology flows between different regions, particularlyreduce institutional barriers and technical barriers which hinder the efficiencypromotion of the rural consumable distribution industry in the backward regions.The fifth part of this paper puts forward the hypothesis that the externalenvironmental factors impacting China’s rural consumable distribution industryefficiency. The factors include rural residents’ income, rural population density, ruraltraffic facilities, rural information level and the development of retail chains. Basedon the study assumptions, this chapter constructs a SDEA-Tobit panel data model tovalidate these assumptions. The results show that:(1) it is remarkable positivecorrelation between rural resident’s income and rural consumable distributionindustry efficiency. The results show that rural residents’ income differences are themain cause of efficiency differences in China’s rural consumable distributionindustry.(2) It is remarkable negative positive correlation between rural population density and rural consumable distribution industry efficiency. One reason is that thelow population density areas are generally more remote, low level of competition inrural consumable distribution industry. High market share of a single enterprise cangain high operating income. Another reason is that in remote rural areas governmentregulation is relatively weak, and rural consumable distribution companies can getmore profits by selling counterfeit and shoddy goods.(3)It is positive correlationbetween the level of retail chain development and the rural consumable distributionindustry efficiency. The results show that in recent years the development of retailchains had a positive impact on t rural consumable distribution industry efficiency.(4)It is remarkable positive correlation between rural traffic facilities and ruralconsumable distribution industry efficiency. The results show that the construction ofrural traffic facilities promotes efficiency of rural consumable distribution industry.Increasing the mileage and technical level of rural road rapidly can reduce ruralcommodity transportation costs.(5)It is remarkable negative correlation betweenrural information level and rural consumable distribution industry efficiency. Therereasons are bellowed. Firstly, although in recent years the level of information inrural areas continues to improve, but information technologies are not introducedeffectively in rural consumable distribution industry. Secondly, with the level ofinformation technology in rural areas continues to increase, the extent of onlineshopping channels to snatch the rural consumer market has also been strengthened.Thirdly, with the improvement in the level of information technology in rural areas,the rural consumer’s Quality protection consciousness is also rising, which makesthe behavior of selling inferior goods to obtain unfair profit decreased in ruralmarket.Finally, the last part summarizes conclusions of the previous chapter, and putforward the proposal from the perspective of the macro and micro environment ofrural consumable distribution industry. Macro measures include:(1) to establish thedecisive role of market mechanisms in rural areas commodity distribution system,and improve the government’s support policies;(2) to promote the level informationof rural consumable distribution industry;(3) to strengthen rural transportinfrastructure;(4) to establish regional industrial policies to promote the coordinateddevelopment of rural consumable distribution industry. Micro measures include:(1)to innovation rural chain form, and reduce distribution costs;(2) to enriched thecontents of the business to improve output efficiency per unit area;(3) to improveinventory turns and capital utilization efficiency.
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