Research On The Operational Efficiency Of China's Industrial Economy: 1980-2006

Industry is a leading factor of national economy, and industrialization is the core and foundation of economic modernization. The level of the industrial economy development and operational efficiency determines the one of other departments and of even the whole national economy. Improving operational efficiency of the industrial economy is not only the urgent need to change growth way for industrial economy, but also the key point that big industrial country marches toward powerful industrial country.Nowadays, China is at the middle period of industrialization, which is a market competition course orientated to highest efficiency. Efficiency analysis has become an important tool of seeking source of China's industrial economic growth, and become main method of appraising its operational quality. At present, improving operational efficiency is one of the front subjects of China's industrial economic management.Up until now, there are lots of researches on operational efficiency of China's industrial economy from different angles, but has not made a common conclusion yet. It is still not deep enough to know its inherent law, and not clear enough to recognite its influence factors. So, this dissertation aims at remedying the deficiency of the existing literature from several aspects described above. By use of DEA and Malmquist index, this dissertation comprehensively estimate and research the operational efficiency of China's industrial economy from 1980 to 2006, in order to explore the change law and fluctuating trend of China's industrial economic operational efficiency, recognite its the main influence factors, put forward suggestion and policy to improve and promote the operational efficiency of China's industrial economy, thus can offer decision basis for China to make the correct development strategy of industrial economy. Summarily, the main contents of this dissertation are as follows:Chapter 1 has explained the research background, purpose and meaning, current research situation, content structure, research approach, technological route,etc., which offered a superclass frame for all research.Chapter 2 has mainly defined concept of efficiency, explored deep into its intension, discussed overall its judgement standards, summarized its sources, introduced and compared its estimating methods used commonly. These established the theoretical foundation for the whole research.Chapter 3 has combed the current situation and tendency in operational efficiency research of China's industrial economy, compared and summaried its researches from different aspects and visual angle, especially pointed out the existing dispute, difference and deficiency which need to be improved, therefore found out the breakthrough point of research for the dissertation.Chapter 4 has detailedly reviewed the history of China's industrial economic development, dissected its reform course, summarized its achievements, analyzed its essential operation features, probed into its existing problems emphatically, and demonstrated the necessity and urgency of China's industry to change growth way and improve operational efficiency by detailed data, fact and theory.Chapter 5 has calculated the total efficiency of China's industrial economy during 1980-2006 from the static angle with non-parameter method of DEA, and decomposed it from the dynamic angle by malmquist index method, according to different classification criterias such as regional characteristic, industrial characteristic, property right characteristic, structure or scale characteristic, in order to dissect its change law completely.As a whole, the average efficiency of China's industrial economy is 0.889 among 27 years, which indicates China's industrial economy has been non-DEA effective since 1980, and its efficiency level is still not high.Chapter 6 has emphatically analyzed the influence of openization, marketization, privatization, scale, R&D input, and informationization upon operational efficiency of China's industrial economy. It established an extended C-D function which includes double produce, on this basis deduced out the econometrics model to analyze influence factors of China's industrial economic efficiency. With cointegration test, we can find the fluctuation of TFP has a long time balance relation with its influence factors. Through setting up ECM model, we can find the ecm has powerful opposite adjustment function while the fluctuation of TFP is deviated from long time balance. In short time fluctuation, openization, marketization, privatization, R&D input of large and medium-sized industrial enterprises, and informationization have positive facilitation to efficiency of China's industrial economy, but scale and human capital demonstrate negative blocking function. Comparatively speaking, system reform and institution innovation, which centred upon openization, marketization and privatization, have most prominent influence on efficiency of China's industrial economy.Based on principle of modern economics and historical law and experience of industrial economic development, as well as the real national conditions of China's industrial economic development, chapter 7 has mainly summaried and refined 11 policy points as countermeasures to improve the operational efficiency of China's industrial economy at present, i.e., promote technological progress to improve TFP; optimize industrial structure to promote structural efficiency; reduce energy consumption to improve energy efficiency; develop recycle economy to improve input-output efficiency; climb upper"two times smiling curve"to improve added value; implement"blue sea strategy"to get scope efficiency; implement informationization strategy to get external efficiency; implement traffic development strategy to improve logistics efficiency; develop industrial cluster to improve organization efficiency; deepen SOE reform to stimulate institutional efficiency; deepen price reform to improve resource distribution efficiency.The main innovations of this dissertation embody in the following aspects:1. It has developed the knowledge of efficiency sourceThe dissertation has summarized 12 different efficiency sources, i.e., scale efficiency, scope efficiency, learning efficiency, technological efficiency, distribution efficiency, competition efficiency, organization efficiency, institutional efficiency, X efficiency, logistics efficiency, trade efficiency and external efficiency. It point clearly out externality which exists in modern network-economy can produce economic efficiency by making the marginal cost of production activity to decrease and marginal return to increase at the same time. This view has opened up the new space for people to realize the efficiency source.2. It has improved calculation and decomposition of operational efficiency of China's industrial economyThis dissertation takes all SOEs and non- SOEs above scale as representative for China's industrial economy, takes time windows of 1980-2006 as the space-time localization, and calculates the total efficiency of China's industrial economy in 1980-2006 from the static angle with non-parameter method of DEA, and decomposes it from the dynamic angle by malmquist index method. No matter in the time range of study, or the visual angle involved in research, this dissertation has given further improvement to a great extent.3. It has expanded the structural form of traditional C-D production functionThis dissertation has established a new C-D production function by choosing variable again: First, expand output by increasing profit variable to prevent one-sidedness of traditional modeling with single variable; Second, decompose the technological constant into some non-entity elements such as institution, technology, information, policy, human capital,etc., therefore further deduced out the econometrics model to analyze influence factors of China's industrial economic efficiency.4. It has deepened the institutional analysis of China's industrial economic operational efficiency.This dissertation summarized China's institutional innovation after the reform and open as three system reforms which centred upon openization, marketization and privatization, generalized the inherent reasons for China's industrial economic to pursue innovation by itself as three times of institutional dilemma, i.e., management rigidity under the dual track system in 1980s, operation loss under buyer's market in 1990s, operation extensiveness under market failure after 2000 year. To break through these predicaments, China's industrial economy has sequentially gone through management, institution, property right, and idea innovation. The purpose of management innovation is to improve the delegation management of enterprise for government, institution innovation is to solve the market entry of enterprise, property right innovation is to solve the capital ownership problem of enterprise, and idea innovation is to solve the choice problem in development path of enterprises.5. It has expanded the countermeasure research of operational efficiency of China's industrial economyBesides summaring, generalizing, and further refining the traditional opinions, this dissertation has also done the newest expansion in two aspects. First, put forward the brand-new concept of"two times smiling curve", point out that Chinese industry must break the old idea and jump out the industrial field to research industrial economy, looks for new efficiency source from the strategic height of industrial evolution and merger. Second, this dissertation think China's industry should implement"blue sea strategy"in order to get scope efficiency, and predict industry's future development trend by TRIZ theory, stride over the border of the existing demand, pioneer the new"blue sea"of profit and efficiency. This offers a kind of new thinking way for traditional industry to obtain economic operational efficiency.