Research Of China Led Lighting Industry Input-output Efficiency

As the “green lighting”, LED has a wide range of favorable features, including energy efficiency, eco-friendliness, quality safe and long durability, all of which make it one of the most widely used lighting equipment in China. With the energy shortage and environmental problems getting increasingly severe, developing LED lighting industry has been an important strategy for China to implement in its new phase of overall development. Under the promotion of relevant government policies both in state and local level, LED lighting industry has seen a rapid growth in recent years.Nevertheless, as a result of the market demand and government subsidies, the competition in LED industry is getting increasingly keen and excess production capacity problems can be even seen in some parts of the industry chain. Therefore,how to maintain the rapid developmental growth of the LED lighting industry while improving the input-output efficiency of the industry is an urgent problem that our government has to tackle at the moment.This study researches the input-output efficiency of China’s lighting industry. In the first part, the former research and studies concerning the input-output efficiencyn of lighting industry are reviewed; in addition, the classic data envelopment analysis method(DEA) is introduced. Following that, after clarifying the concept of the LED industry and summarizing the current development status of the industry, the opportunities and challenges that LED industry is confronted with are identified and an assessment indicator system is built to assess the input-output efficiency of the LED lighting industry. Subsequently, operating data of the 2011-2013 period from 32 listed LED companies in Shanghai and Shenzhen is chosen to be the research sample,after processing the data collected, the input-output efficiency of the Chinese LED industry is assessed using the Charnes-Cooper-Rhodes Model from the DEA Model.Telling from the assessment result, the overall input-output efficiency is good, but there is still room to improve. Adding to the assessment, the factors that influence the lighting industry are analyzed using the multiple regression analysis method, which leads to a conclusion that economy of scale exists in the lighting industry and government subsidy and research input positively improve the input-output efficiency of the LED lighting industry. In the last part, with consideration of the current development of our country’s LED lighting industry, some suggestions are made inthe hope that they could improve the efficiency of the industry.