Empirical Study On Technical Efficiency Of Equipment Manufacturing Industry In China

As the core of industrial and economic development, the equipment manufacturingindustry has been given adequate attention by the Party Central Committee in recentyears. During the “Eleventh Five-Year Plan” period, the government proposed that theequipment manufacturing industry should be developed rapidly and expanded vigorously.The gross output value of the equipment manufacturing industry reached nearly30trillion in the end of “Eleventh Five-Year Plan” period. Both its sensitivity and influencecoefficient is big. It also has a strong foundation status in economic development. What’smore, in the “twelfth Five-Year Plan” period, the government clearly puts forward thatthe equipment manufacturing industry should focus on the autonomation of the key partsand components technology, improve the technical level of energy-saving andenvironmental products, strictly control the quantity expansion, optimize the structure ofvarieties, enhance the comprehensive utilization of resources. The equipmentmanufacturing industry should not only depend on the industrial scale and quantity, butalso on its quality. The essence of the economic growth model, which shifts fromextensive to intensive one, is to change the way and improve the target of efficiency.What exists behind the rapid development of our country’s equipmentmanufacturing industry is huge capital investment and labor force. At the same time,some problems also arise, including excessive consumption of resources, redundantconstruction of infrastructure, excess capacity of low value-added products, upwardpressure on ecological environment etc. Facing these problems, the utilization ofelements of the equipment manufacturing industry has become the focus. To maintain itssustainable development, it is necessary to shift from resource consumption to intensiveelements. The production models should be improved from dependence on quantity andthe expansion of industrial scale to the high efficiency and products upgrading. One ofthe most important efficiency targets is technical efficiency. Therefore, this paper baseson improving the technical efficiency of the equipment manufacturing industry,strengthening the utilization of elements, adopting the scientific theories andmeasurement methods to reflect the industry-wide and sub-sectors’ actual level of the technical efficiency of the equipment manufacturing industry, then expand the study ofthe convergence of technical efficiency and its influencing factors, and draw theappropriate conclusions, to improve efficiency of the equipment manufacturingtechnology and provide revelation of the changeable policy in regional developmentstrategies.On the fundamental analysis of the technical efficiency and the sustainabledevelopment theories of the equipment manufacturing industry, the DEA models arefirstly adopted to measure the technical efficiency of the industry-wide and sub-sectors ofthe equipment manufacturing industry, which shows that the technology of theindustry-wide and sub-sectors is inefficient. The scale efficiency which is decomposedfrom the technical efficiency and the pure technical efficiency also prove the practicalsituation that the scale of our country’s equipment manufacturing industry is vast; thetechnology relatively lags behind; the resource utilization rate is not high. Furthermore,the DEA-Talmudist method is used to measure and analysis the changes of the technicalefficiency, which mainly targets eastern, central and western China. The result shows thatthe technical efficiency raises slowly, which is contrary to the static technical efficiency.The result of sub-sectors’ technical efficiency embodies the difference of their resourceutilization, which reflects that the resource utilization and the industry developmentsituation of industry-wide can’t be judged by standard of one general area. All thesub-sectors’ situation and preferential development should be comprehensivelyconsidered. Using the commonly used methods again, such as convergence, absoluteconvergence, conditional convergence, to test the technical efficiency’sconvergence of the industry-wide and sub-sectors, reveals that the overall trend of ourcountry’s equipment manufacturing industry is convergent. But if control variable suchas conditional convergence and absolute convergence are added, the test resultwill be different. Therefore, it can reflect that technical efficiency is not only related toinitial efficiency, but also related to external factors. At last, the thesis studies on theexternal factors’ functions on equipment manufacturing industry and sub-sectors’technical efficiency. The result shows that element has a great different influence on theindustry-wide and sub-sectors’ technical efficiency. With the combination of convergenceat the same time, the countermeasure suggestion of promoting the equipment manufacturing industry’s technical efficiency and the basis of sub-sectors’ selection ofdifferent areas has been brought forward.