Analysis On Technical Efficiency And Efficiency Loss Of China's Beverage Industry

The beverage industry of China has developed significantly since 1978. However, the administrative monopoly (hereafter, AM) is severe, because of the revenue and finance reform, civil servant promotion mechanism and other reasons which resulted from the transition economy. The AM makes the beverage industry of China have lots of problems, such as the unreasonable industrial frame. What is worse, technical efficiency (hereafter, TE) has to be smaller, for the AM which results in efficiency loss (hereafter, EL). In this thesis, we employ the provincial data, 1988-2005, to analyze how the AM affects the TE and EL, not only on aspects of status quo and theory, but also on model and demonstration. The policy recommendations can be found in the last part of this thesis.We focus on the following questions in my thesis: First, the questions about status quo and theory analysis. What about the status quo of beverage industry of China? What are reasons for the problems of beverage industry? Are there any institutional reasons for the AM? How the AM impacts the EL and TE? Second,questions about model and demonstration analysis. What are the methods to calculate the TE and EL? Are there any relevant efficiency with the TE and EL? How to account these efficiencies, if they do exist? What about the degree of influences from the AM on TE and EL? Third, questions about conclusions and recommendations. How to clear the side effect of the AM?The models and methods employed are following: First of all, we use the local AM theory, especially its theory about resource collocation, and Structure-Conduct-Performance (hereafter, SCP) frame to explain the theory how the AM effects on TE and EL. Secondly, the Data Envelopment Analysis (hereafter, DEA) and Stochastic Frontier Analysis (hereafter, SFA) are the two main models employed to calculate the provincial TE, while the Constant Returns to Scale-DEA (hereafter, CRS-DEA) model and Variable Returns to Scale-DEA (hereafter, VRS-DEA) model are being employed to estimate the industrial TE and EL.The innovations can be identified obviously: First, this is the first thesis with topic about beverage industry of China. Second, we use three models, such as SFA model, CRS-DEA model and VRS-DEA, to eliminate the weakness of one model. What is more, the tests of correlation, consistence and difference can not be neglected in this thesis. Third, we will filtrate the 2088 data, because the SFA model is so strict with the data. Fourth, we replace the method of shadow-price by the method of weighted-evaluation, for the sake of dispelling the uncertainty. Fifth, in order to analyze the consequences clearly, we explain the details from the facets of whole trend, period distribution, frequency distribution, types of materials and so on. It is hard to avoid weakness in this thesis, because there are just a few relevant papers on this subject.There are three main conclusions that we make: Firstly, the results of TE from SFA model, CRS-DEA model and VRS-DEA model went up in the past 18 years. But their absolute values were small, under the influence of AM. Further more, the three results satisfied the qualities of correlation, consistence and difference tests. Secondly, the absolute values of industrial TE, industrial pure efficiency, industrial scale efficiency, and industrial frame efficiency were not big enough, although they raised during the program of frequency. Thirdly, the EL caused by AM was as huge as 10% of the total sales income. Fortunately, this EL reduced in recent year, from 10% to 8.9%.We supply four policy recommendations: (1) pay attention to inputting enough resources, and arrange the proportion rationally ;(2) ameliorate fiscal transfer payment system, lessen the area gap, accelerate the industry promotion; (3) look for the point which can be broke through, focus on the provincial characteristic; (4) break the AM, improve the TE generally. We should keep in mind that the fourth one is the key. So we think that government can employ the following methods to remove the AM: First, set up the sound civil servant promotion institution; Second, mend the local fiscal system; Third, compartmentalize the powers of different government, in particular the powers of management, financing and investment; Forth, change the functions of governments; Fifth,reduce the interference by the government, and separate the government and companies; Sixth,simplify the scale of government, and reduce the number of civil servant; Last but not least, improve the judicature system, create a better competition environment.