An Analysis On Performance Of China’s Tobacco Industry Based On Dea

China’s tobacco industry carried out structural adjustment in the "Tenth Five-Year" period.In the reality of maintaining cigarette production planning and control, China’s tobacco industry closed the small enterprises and supported the strong enterprises to gradually form a coordinated development configuration of moderate concentration, full competition among enterprises, large enterprises led, thereby completing the "large market, large business, large brand" strategic plan. This constantly enhanced the strength of China’s tobacco industry against the competition from foreign companies.At the end of2007, the number of China’s tobacco industry enterprises fell down to31from143on2001. It basically completed the provincial restructuring and merger, gradually shift the focus to the cross-provincial mergers.At this background, this paper draws the experience of a certain industry-specific performance evaluation and combines with the status quo of China’s tobacco industry, considers the input&output indicators and their characteristics, uses data envelopment analysis (DEA), does the empirical research on the status of the efficiency and TFP.On this basis,this paper specifically analyzes the performance of the tobacco industry and make some suggestions. This thesis is composed by four parts:The first part is the article’s preface, which introduced the article’s issues, purposes, significance, the review of the literature and researching methodology, objectives and technical route, and the possible innovations and insufficiencies.The second part describes the status quo of China’s tobacco industry. Under the SCP analysis framework, this part explains the status quo of China’s tobacco industry in the view of market structure, market conduct and market performance.The study found that market concentration rate increased quickly in the structural adjustment process, market structure has changed from "a high degree of decentralized" on2004to "low concentration of competitive-type" on2007. Market performance has also been improved, but in absolute terms there is still a big gap with foreign tobacco.The third part includes Chapter III and IV. On the basis of the introducing efficiency in the content, classification and measurement methods, the article chose DEA method as the analysis method of the performance, and described the basic concept of the method and the basic model.Then it briefly introduced the principle and the main model of the Malmquist index which measures dynamic change of efficiency. Chapter IV is the core part of this article.Using CCR model and BCC model in DEA method, from a technical efficiency perspective, it conducted a performance analysis based on the cross-sectional data of17sample provinces from2001to2007.Then it got the total factor productivity index and its decomposition results by using Malmquist method to analysis panel data of China’s tobacco industry from2001to2007.The empirical results show that, after structural adjustment,the level of the resource allocation and the scale allocation of China’s tobacco industry has increased,most of the province has the increasing returns to scale.The total factor productivity kept fluctuative growth, technological progress compared to resources allcation and scale allocation improved much to promote an increasement of the productivity.The fourth part summarized the basic conclusions, and proposed relevant policy recommendations.