Research On China 's Gold Industry Efficiency

China’s gold industry has formed the industrial chain including gold production, processing and circulation, and it has made the great-leap-forward development since the China’s reform and opening-up. China’s gold output reached 451.8 tons, ranking first for eight consecutive years. It has an increasing investment in recent ten years, but there is still a gap compared with the world gold giant. So whether the industry input-output ratio increases, we need to measure China gold industry efficiency accurately, and find out the factors influencing the efficiency of China’s gold industry.First, we analyze the status quo of China’s gold industry from the production, cost and profit, scale, supply, demand and the degree of industrial concentration. Because of studying the internal efficiency of the enterprises, that is the corresponding output obtained through capital investment, the paper divided efficiency into technical efficiency and allocation efficiency, using the Malmquist index based on DEA. The result is that the technical efficiency of the China’s gold industry is low, and the gold enterprises’ scale efficiency is positively correlated with the size of the company. Especially when the gold prices dip in 2013, the gold industry begins to re shuffle, and some companies suffered severe losses because of the small scale and low efficiency. According to the empirical results, the paper summarized three reasons for the low efficiency of China’s gold industry, backward technology, the single structure of the enterprise product and low industrial concentration.The paper analyzes the factors influencing the China’s gold industry efficiency using panel data model. The conclusion is that the economic development, informatization construction, infrastructure construction has a positive effect to the China’s gold industry efficiency. But the trade development index for different size of enterprises has differentiation. For large gold enterprises, they are suitable for exploration and making foreign direct or indirect investment. But for smaller companies, overseas investment should not be too much, otherwise it will cause irreparable loss.According to the empirical model, the paper draws the conclusion that the technical efficiency and scale efficiency is low in China’s gold industry. Especially in the face of adverse effects caused by the fall in gold prices, the low technical efficiency is highlighted. Therefore, the paper puts forward policy suggestions to improve efficiency about China’s gold industry, such as improving industrial structure to reduce costs and increase efficiency, the optimization of industrial structure, promoting the integration of industrialization and informatization, decentralization and stimulate the vitality of enterprises, promoting the overseas development for giant enterprises actively, etc. We hope the suggestions can vigorously promote the China’s gold industry transformation and upgrading during the new historical period in achieving the China dream. So that the China’s gold industry can sustain and healthy development in the next period.