Production Efficiency Of Chinese Iron And Steel Industry Based On Inter-provincial Panel Data

Iron and steel industry as one of the most rapid developing sections o has contributed enormously to the booming of Chinese economy, which weighted about 6% in GDP in recent years.This paper gives an overview description of Chinese iron and steel industry in the aspects of industry structure and techniques innovation, and then, conduct analysis of the layout and regional variation of the industry, finds out that there are differences regarding the regional production efficiency. Then the theoretical analysis is conducted in production efficiency, and the functions and models are also described.Then 20 cross-sectional data is applied the DEA to calculate technical efficiency, technical progress indexes over 28 provinces in China iron and steel industry during 1985-2000 by applying the CCR and BCC models. The major finding is as follow: eventhough the scale of the industry is increasing; it is still lack of the effect of economic scale.Then the provincial panel data is applied in the DEA and Malquist Index calculation to discover the causations of the differences between regions and the reasons for the variation of efficiency in iron and steel industry. The finding is that the increase of production efficiency of every province is driven by the increase of technical progress efficiency and effect of economic scale contributes less to its increase.