Empirical Analysis Of Chinese Retailing Efficiency

Since the implementation of the Reforming and Opening up, especially China’s entry into WTO and fully opening up of the retailing industry in2004, Chinese retailing has developed at breakneck speed. The retailing market size and market format structure changed a lot. The ways in which retailing companies operate also change, like the chains, group corporation and more centralized operating trend. Under the great influence of the financial crisis in2008, European and American countries’economic recover slowly, and China has to shift its economic growth strategy to domestic demand-driven from export-driven economy. So realigning becomes more important for the national economy growth.The analysis of productivity and efficiency has become an important activity in retailing. There are many representative literatures about realigning efficiency from both micro and macro analysis, including three levels:retailing chain enterprise’s internal efficiency, retailing companies and regional realigning industry. So far, no essay about realigning efficiency analyze from both enterprise and regional level. In this paper, on the basis of previous studies, we collected the input-output data from the listed retailing companies and provincial realigning industry that above the limitation, using the qualitative and quantitative research methods to analyze Chinese realigning efficiency in a comprehensive system.Based on the cross-sectional data of2009, use DEA-BCC model to evaluate the efficiency of26listed retailing companies and provincial retailing industry above the limitation. Then we use Mulmquist Productivity Index to examine the efficiency changes of26listed retailing companies from2008to2009and provincial retailing industry from2005to2009. Based on the crosswise comparation and vertical analysis of the retailing efficiency, we offer variety methods to analyze the retailing efficiency, and get abundant conclusions about the retailing efficiency of our country, and put forward some suggestions with respect to enterprise operation and macroeconomic policy making.This essay includes six sections:Section one introduces the background of this topic, the research purpose and presents three innovation points, including comprehensive analysis level, detailed efficiency analysis and the comsideration of the retailing characteristics in input-output variables selectionSection two is the literature review. First, we briefly introduce the efficiency in terms of the concept, classification and connotation, and summarize six commonly used methods in the efficiency research. And then, we give the literature review about the retailing afficiency analysis in reference to the analysing levels and briefly described theirs research limitations.Section three gives a comprehensive introduction about retailing development from three aspects:the macro environment, retailing industrial development and corperate opperation. The macro environment includes economic environment, policy environment and social environment. Retailing industrial development introduces the three phases of retailing development, retailing market size and retailing format development. Corperate opperation introduces the development of the chain stores and merger behavior of retailing enterprise.Section four mainly introduces the methods used in this paper:the data envelopment analysis (DEA). Firstly, we introduce the DEA theory. Secondly, we introduce classical DEA models (CCR model, BCC model and Mulmquist Productivity Index) and their derivation process. And finally, we introduce the characteristics, restricts and the procedure of DEA application.Section five is the empirical analysis, including the selection of DMUs, input and output variables, data and empirical analysis results. This article analyzes China’s retailing efficiency from the micro and macro levels in the static and dynamic way. Firstly, according to the2009cross-sectional data, we analyze the efficiency of26listed retailing companies and provincial retailing industry above the limitation. According to efficiency evaluation result of DMUs, we divide them into three groups to discuss their TE and SE. Most of the DMUs which are not DEA efficient have not only radical movement, but also have slack movement. Secondly, according to theenterprise panel data from2008to2009and provincial retailing panel data from2005to2009, we evaluate the retailing efficiency changes in four levels:enterprise, provincial, regional and national levels in terms of MPI, TEC, TC, PTEC and SEC.Section six is the summarized conclusion about retailing efficiency according to the empirical analysis results in section five. And after that we offer some usefull suggestions with respcte of the retailing company operation and the government retailing policy making.