Analysis On Total Factor Productivity Of Listed Retail Companies In China Based On Malmquist Index

Since the financial crisis, China’s retail industry was the first to recover. The mergerand acquisition, together with the rise of e-commerce sales methods greatly stimulated thedevelopment of the retail industry. With the expansion of the prosperity of our country’sconsumer market, large international retail companies are swarming into national market,which brings great challenges to native retail enterprises. We hope that the development ofthe source of the momentum in the manufacturing sector financial industry has not yetfully warmed up period. Based on one of the data envelopment analysis models (DEA)which is called Malmquist Index analysis, we use the inputs, outputs data of52listedretail companies between the year2007to2011to analysis total factor growth rate and thedecomposed efficiency growth rate of total factor of technical in advance, which comes aspure technical efficiency and scale efficiency index changes to in-depth analysis of thesource of growth. Conclusion: there is space for father improvement of China’s retailindustry total productivity. Technological progress index is at low level, the high levelcomprehensive technical efficiency, which is constituted by pure technical efficiencychange index and scale efficiency change index, have shown to promote the company’sactual output to move to production possibility frontier. Industrial structure and the levelof corporate governance are very beneficial to the development of the retail business.Retail companies need to strengthen the capability of independent innovation and improvethe technical level, in order to reach a higher level total factor productivity in the longterm.