The Empirical Study Of China's Listed Shipping Companies Efficiency Based On DEA And Malmquist

Since the 20th century, as the basic industry which has promoted economic integration of the world and supported the international trade globalization, the shipping industry has made a significant contribution to the rapid growth of the world economy. China's shipping industry is composed of a sizeable fleet of coastal and ocean-going fleet. After several decades of development, she is playing an important role in the international shipping market. Shipping industry is an significant part of modern logistics, its healthy and sustainable developing is considerable for enhancing the overall strength of nation, for which could optimize the economic structure, reduce logistics costs, increase economic efficiency, enhance the competitiveness of enterprises. Therefore, the evaluation of the shipping company's performance should not just focus on the concept of profit or benefits but get know to the operating efficiency of the shipping companies and study its operation performance. This paper using the DEA to analyze thirteen shipping companies'operating efficiency, which is listed on china stock market, based on the data from 2007 to 2010. And use the super DEA to compute efficiency scores of the shipping companies which are on the frontier to list the shipping companies'efficiency,. Compared to the basic DEA score, super DEA score could be more than 1. At last we employ data envelopment analysis (DEA) to measure the Malmquist productivity of shipping companies from 2008-2010. Malmquist productivity has three components:the measurement of technical change, the measurement of the frontier forward shift, and the measurement of the frontier backward shift of a company over two consecutive periods. This approach reveals patterns of productivity change and presents a new interpretation along with the managerial implication of each Malmquist component.EDA measures the relative efficiency of shipping companies. Malmquist can identify the productivity and efficiency change of the company which DEA cannot accomplish. We found that the year of 2009'DEA efficiency score is higher than year of 2008 and 2010.However, it's Malmquist index is lower than 2008 and 2009.This paper combined the DEA and Malmquist to assess the efficiency of shipping companies. So that we could do the proper evaluation of shipping companies efficiency both from the company itself and the industry.