Research On Cost Efficiency Of Textile And Clothing Listed Companies Based On DEA Model

Textile and clothing industry is an important part of China’s economy as a pillar industry of the people’s livelihood.But in recent years,with the cost constantly improved,such as the price of labor, power and raw materials is growth,textile and apparel industry of our country is faced with severe challenges.In this case, textile and clothing enterprises how to recognize cost efficiency correctly in the management is particularly important.I use non-parametric frontier analysis method(the DEA envelope analysis method) in this paper and use textile clothing listed companies as samples,Then I establish the model of cost efficiency of China’s textile and clothing enterprises for cost efficiency analysis.This article take the input index of the price index into the research on cost efficiency of textile and clothing industry in China, Then the cost efficiency is decomposed into allocation efficiency, pure technical efficiency and scale efficiency.and the innovative ideas were I combined the three measures with the ownership,sub-industry and the location of companies to analysis the cost efficiency of textile and clothing industry comprehensively.By compared the result of cost efficiency of textile and clothing listed companies,we found that enterprises have higher allocation efficiency and scale efficiency, but the low pure technical efficiency. So the overall cost efficiency is low.Firstly,on the analysis of the cost efficiency in sub-industry, the clothing industry has the highest cost efficiency, mainly in the allocation efficiency and pure technical efficiency advantage.Secondly, on the analysis of the cost efficiency in different regions.we found eastern cost efficiency is higher than the central and western, but the cost efficiency in central and western is increasing rapidly, mainly it reflected that the technical efficiency and allocation efficiency has been developing rapidly in recent years, beyond the eastern region. But the scale efficiency of the western region is relatively backward.In addition, cost efficiency of private and joint venture enterprises is higher than that of state-owned enterprises, whose pure technical efficiency and allocation efficiency is higher than private and joint venture enterprises, but in recent three years, the rapid growth of the pure technical efficiency of state-owned enterprises have to catch up with private and joint ventures.Finally I combine the questions which influenced the cost efficiency of textile and clothing listed companies,and I put forward the countermeasure and suggestions: On the hand,they could strengthen upgrade in the industry cluster,and improve the scale efficiency, enhance the training of specialists in the field of high-tech, enhance the innovation of technology brand,which is influence the pure technical efficiency. On the other hand,they need improve the management innovation, strengthen information systems,improve the allocation efficiency of enterprise resource,comprehensive higher cost efficiency of textile clothing enterprise.Then we can strengthen our country international competitiveness of textile clothing enterprise.