Analysis On The Productivity Of Road And Bridge Industry In China And Its Empirical Research

In China, more than 95% highway and 61% primary road is toll way. The total mileage of toll highway and it’s proportion are ahead of the world, which give birth to the unique toll highway enterprises by operating Toll Road as the main business.By the end of 2015, there are 19 of China’s Toll Highway Enterprises (CTHE) listed in Shanghai and Shenzhen.Constructing Road with Loans and Pay Back Loans with Fees has almost become the construction mode for all Chinese highways since the first chinese toll highway was opened in 1984. The policy refers to that the country raises highway construction funds through setting the toll station to repay loans and other forms of financing, when it is in the lack of financial resources. The 54th executive meeting of the State Council in 1984 formally decided to carry out it, and in 1999 the HIGHWAY LAW admitted by the National People’s Congress, it made a legal recognition to this policy. In 2004 the regulations on the administration of toll road promulgated by the State Council made a further and clear definition to this policy and unified policy. The toll roads which arise by this policy are the roads that have the toll staions according to laws.Construct road with loans and pay back loans with fees is a policy which is carried out in the early stage of reform, under the conditions of serious lag of highway transportation and the limited national finance, which had played an important role ever. But there are still some problems which are becoming the hot social focus, in the process of development. For example, the toll fee accounted for about 1/3 in the logistics and transport costs, which is the main reason of enhancing the transportation cost and raising prices. According to a study released by World Bank in February 2007, the proportion of chinese vehicle tolls in per capita GDP is more than 2%, ranking first in the world. Therefore, to study and measure the productivity of CTHE is an important subject to all scholars.For analyze the development status of CTHE productivity, we start from the theory of productivity, by collecting a large number of enterprise data and industry data and reading a large number of relevant literature, then we analyze the productivity and main factors of CTHE by using Data Envelopment Analysis (DEA) method and censored Tobit factor analysis model. This paper mainly focus on:(1) According to the theory of Productivity Measurement, it discussed the forming mechanism of service industry productivity, which provided basis theory for measuring productivity of CTHE.(2) An input-output index system for evaluating the productivity of CTHE is established, and the DEA CCR, DEA BCC and DEA super-efficiency analysis models are used to measure the productivity of CTHE by using cross-sectional data. The study found that the overall productivity of CTHE maintain a sustained growth trend, the average annual growth rate of CTHE productivity reached 1.95%, but there are still a huge individual differences among the CTHEs productivity in the period of 2007-2014; Part of CTHEs pay too much input, some of their maximum profit have ability to grow 775.81% in theory; Through sensitivity analysis, it is concluded that the selected input variables and output variables have good stability for the calculation of the CTHE efficiency values.(3) This paper measured 17 CTHE productivity by collecting 2007-2014 panel data based on DEA window analysis method. The study found that the efficiency of CTHE showed an increasing trend, the overall efficiency reached 0.714, that is, the overall 71.4% input is effective, and 28.6% input is relatively ineffective; CTHE’s efficiency in Southwest China, East China, Central China of is higher, showing a zonal distribution, CTHE’s productivity in Southern China and North China is relatively lower; Most of the CTHE’s productivity showed an increasing trend, there are 11 CTHE’s productivity increase in wave.(4) Based on the principle of scale efficiency analysis, the scale and productivity of CTHE are analyzed by using CCR/BCC DEA model. The study found that large CTHE have no significant advantage in efficiency compared to the small and medium-sized CTHE, The pure technical efficiency and scale efficiency of CTHE have a significant impact on productivity, the operating costs are the main factors that affect the CTHE productivity, while the fixed assets and the wages of employees have no significant impact on productivity. Therefore, the supervisors of CTHE have no need to expand the assets scale, also do not need to raise the scale of the enterprise as the main goal of the business, but should focus on the development strategy to improve the company’s technical level and service ability to strengthen the overall competitive ability of enterprises through the promotion of enterprise production technology level and service capabilities. At the same time, according to the Lorenz Curve and Gini Coefficient to analyze for production resources allocation, this paper found the gap between inequality curve, perfect equality line of Technical Efficiency, Pure Technical Efficiency and Scale Efficiency is much smaller than the gap of fixed assets. We can calculate the Technical Efficiency Gini coefficient (equal 0.135 765), Pure Technical Efficiency Gini coefficient (equal 0.079 916), Scale Efficiency Gini coefficient (0.073 686) by Lorenz curve, and the Gini coefficient of fixed assets is reached 0.555 914, Which indicate that CTHE size distribution exists significant difference and imbalance in the resources allocation seriously.(5) This paper describes the productivity growth theory foundation and development of service industry, using the Malmquist Total Factor Productivity theory to process panel data of CTHE, and it analyzes the effect of the Efficiency Change, Technological Change, Pure Technical Efficiency Change and Scale Efficiency Change on the Total Factor Productivity. The study found that the Total Factor Productivity of CTHE has 3 years in the stage of regression and 4 years in the progressive stage, Total Factor Productivity decreased by 0.8% during the study period. Technological Change (TC) has a significant impact on the Total Factor Productivity change, Scale Efficiency Change (SEC) has no significant impact on Total Factor Productivity Change, Technological Change is the main factor that affects the Total Factor Productivity of CTHE. The study also found that the Total Factor Productivity of CTHE with large scale of assets is in a downward trend, and the majority of the Total Factor Productivity of CTHE with small and medium scale of assets is in an upward trend. The Total Factor Productivity of largest five CTHE with more than 50 million RMB assets were all less than 1, show a decrease in productivity, dropped an average of 6.7%. The Total Factor Productivity of the 12 small and medium-sized CTHE with less than 50 million RMB assets showed a rising trend rose by an average of 2.1%.(6) This paper learn from the related theory of productivity and the literature of the enterprise management theory, then propose the exogenous variables and the endogenous variables which affect the productivity of CTHE. It also combines and makes an empirical research about the DEA CCR model, DEA window analysis model and Tobit factor analysis model with environment factors to measure efficiency and factor analysis so called Three Progressive Level Efficiency and Factor Analysis Method. The study found that external environment has no significantly affect in CTHE’s productivity, internal environmental factors include the highway freight, corporate life, management efficiency, enterprise debt level was positively correlated to the CTHE’s productivity. Internal environment factor include Length of the Highway and Wage Rates was negatively correlated to the CTHE’s productivity, and the local environment include the Local GDP, Possession Of Highway Business Transportation Vehicles and the enterprise internal environment include Average of Fixed Assets, Professional Talent Structure did not significantly affect the CTHE’s productivity. Finally, the study gives some suggestions and measures for the development of CTHE.(7) Through the China’s Toll Highway Industry (CTHI) production efficiency measurement analysis and measurement, we found that the effects of CTHI production efficiency evaluation with the exclusion of environmental factors and random errors, the Scale Efficiency of China provinces’Toll Highway Industry is 0.9183 in 2014, lower than the Pure Technical Efficiency (1.0206). This shows that the key factors, which influence the CTHI’s productivity is not management and technical inefficiency, but the scale inefficient.In this study, we have proposed some suggestions to the development of Toll Highway Enterprises and Toll Highway Industry of China.