Research On The Chinese Industrial Technique Efficiency--Based On DEA Analysis

Industry economy is the dominant of domestic economy, and the level of industry development determines the level of domestic economy. In the past 30 years, China's industry has made a great progress and stepped into a new hierarchy especially after entering the WTO. Industrial technique efficiency (TE) is an important index to measure the status of industrial development, and with the value of technique efficiency we can understand the status of China and each province's industrial development.This thesis uses non-parametric method of Data Envelopment Analysis (Data Envelopment Analysis, DEA) to measure the national and each province's industrial technique efficiency in the past 6 years after entering the WTO, with data from (2003-2008). I take each province and each city as Decision Making Unit (DMU), Industrial Number of Employed Persons, Earning of Employed Persons, and Investment in Fixed Assets and Semi-finished Product Investment as input variables, and Gross Regional Products, Gross Industrial Input Value, Value-added of Industry and Total Profits as output variables. And further, I gain the pure technique efficiency (PTE), scale efficiency (SE), and the status of returns to scale of each province. The results show that in the past 6 years, national TE value was increasing except in 2003 because of SARS virus and Industrial PTE was keeping increasing without being affected by the SARS. The TE and PTE in the East were relatively stable, that in the Middle area fluctuantly increased and that in the West area kept increasing.After understanding the rules of Chinese industrial efficiency variation, I analyze 30 provinces and cities'TE in 2007, and find that TE of some west provinces such as XinJiang Province is at the top, but on the average, the TE and PTE in the East is larger than that in the Middle, which is also larger than that in the West. Moreover, I gain each province and city's redundancies of input elements through processing and recalculating the data. It turns out that we know why some provinces and cities are inefficient. When we discuss the factors which affect PE and PTE, I want to analyze marketing economy factors'affection to PE and PTE. I design four variables which are the Degree of Non-public-owned Economy, Degree of Capital Market's Opening, Degree of Trade's Opening and Proportion of Government Expenditure to indicate marketing economy factors. Then, I make a regression analysis taking the four variables as independent variables and the PE and PTE value as dependent variables, and find that 17.3% of affection to TE can be explained by the four variables,16.4% of affection to PTE can be explained by them. The influence to efficiency made by Degree of Non-public-owned Economy is not evident and the left three variables give a notable influence to efficiency.At last, I give some related conclusion and suggestions. I believe we should continue to increase the efforts to the West Exploitation, encourage the intercourse of industries in the East, West and Middle part, and deepen the opening of capital markets, strengthen the level of free trade in the world, maintain a rational financial expenditure and add the support to R&D.