Comparative Analysis On The Efficiency Between Domestic Enterprises And Foreign Enterprises In China's Manufacturing Industry

Since the reform and open policy, along with the unceasingly penetrated market economy system reform and the unceasingly enhancement in opening to the outside world, the enterprise pattern of manufacturing industry in China has had the tremendous change. The foreign capital we bring in mainly concentrates mainly in the manufacturing industry, occupying 60%-70% of the overall foreign capital, and assuming the tendency which grows continually; meanwhile, the different system of ownership of domestic capital enterprise's proportion in the manufacturing industry has also had the tremendous change. The proportion of state-owned enterprise has already dropped from 76%.in 1980 to 30% resently.At the same time, the private enterprise has obtained the considerable development. The enterprise pattern optimization enabled the economy operating efficiency in China's manufacturing industry to enhance quickly. However, the high investment, low efficiency is a prominent problem throughout the growth process of China's manufacturing industry prominent questions.Therefore,it′s very important to analysis the present situation of the efficiency in China's manufacturing industry and find ways to improve it.On the basis of comparative study and analysis of the various main methods of productivity analysis in the paper, by using data envelopment analysis, the author estimates the technical efficiency,the pure technical efficiency,the scale efficiency and the growth of Malmquist productivity indexes of domestic enterprises and foreign-invested enterprises in each industry of manufacturing in China from 1999 to 2006 respectively. The result of research is that the technology and scale in most domestic enterprises and foreign enterprises are inefficiency. Domestic enterprises have high efficiency in some labor intensive industries and monopoly industries .Meanwhile,the foreign-invested enterprises have high efficiency in some capital intensive industries and technology intensive industries. The TFP has an increasing tendency in both types of enterprises of all manufacturing industries, but the growth rate and its impetus vary not only among different types of enterprises but also inside the same type of enterprises. The Domestic Enterprises have a higher growth rate than foreign enterprises in the majority capital-intensive and labor-intensive industries. There is a possibility that the domestic enterprises can reach the efficiency level of the foreign enterprises in the low technical industries; But the efficiency disparity between two types of enterprises is expanding unceasingly in the technology-intensive industries. Finally, based on the result of empirical analysis, the essay puts forward some policy suggestion.