Empirical Study On Technical Efficiency And Impacts Of China’s Iron And Steel Industry

People always paid great attentions to China’s iron and steel industry. It playsa very important role in the development of national economy. China’s iron andsteel industry has made a great progress in the past decades, growing from smallto big. However, we should also see that many problems appears with the fastdevelopment of China’s iron and steel industry, such as big wasting of energy,resource, and the pollution to the environment. At the same time the problems oflow industry concentration and weak technological innovation are highlighted.How to exactly evaluate the development condition of China’s steel industry isbecoming a pressing problem. As the main force in the iron and steel industrialfield, Chinese listed Iron and Steel enterprises reflect the power and performancelevel of the national iron and steel industry. So it is a good way to study thetechnical efficiency of listed companies so as to solve the above problems.Firstly, a brief introduction was made concerning the features of iron andsteel industry. I also analyze the development status of China’s iron and steelindustry in detail. During the progress, it pointed out the serious problemsremained in the development of China’s iron and steel industry. Secondly, thispaper studied the technical efficiency of Chinese listed Iron and Steel enterprisesin period2002-2008by using stochastic frontier analysis and data envelopmentanalysis at the same time. At last but not least, the paper discussed the impactfactors of the development of China’s iron and steel industry.The results showed that the efficiency level of China’s iron and steel industryis not good, and the overall trend went down firstly and then went up. The resultsalso make a proof to the shortage of technical innovation and technical progress.Furthermore the paper revealed the output elasticity of labor, capital and energy. Italso showed the impacts of size enterprise size, financial leverage, agency costsand other factors to the technical efficiency of companies. The paper made a deepsummary and consideration of China’s iron and steel industry.