Comparative Study of Total Factor Productivity among China’s Iron and Steel Listed Companies
|School||Zhejiang University of Technology|
|Keywords||DEA Efficiency Total Factor Productivity|
The healthy development of iron&steel industry’s scale and technology and efficiency is a vital factor to ensure the sustainable development of China’s industry. Total factor productivity (TFP) is an important international indicator of measuring sustainable economic growth, by the comparison of listed companies’ TFP in iron&steel industry, we analyze the problems and potentials of the industry’s development, this work has tremendous meaning for Chinese iron&steel industry to make scientific strategy in the future.First, the paper introduces theoretical basis of TFP, then chooses operating income、PBIT、raw steel output、gross wage and net fixed asset as indices, combines 25 listed companies’ data from 2005 to 2009 and uses DEA model to analyze the industrial efficiency. The research shows:(1)Through horizontal comparison, those companies’ efficiency vary in large scale,big companies’ combined efficiency doesn’t have advantages compared with small ones, nevertheless, the big ones perform much better at pure technical efficiency level;through vertical comparison, the financial crisis makes a great impact on industry’s efficiency, in 2009,most listed companies have been in drs stage;(2)According to the change of Returns to Scale, listed companies are divided into four kinds :growing、reformational、steady、and questionable ,reform is a must for enterprises from small to big and from big to strong;(3)Cross-border consolidation by market power proves to be a better way to enhance overall efficiency than regional combination by administrative force;(4)Judging by the change of Malmquist index, the industry’s efficiency does not act smoothly which fluctuates a lot, improvement of the industry’s TFP mainly relies on technical efficiency, while technical progress becomes its restraining factor;(5)Regression analysis indicates that the scale and the movement of the allocation of human resources and management of capital are adoptable determinants to explain the change of those listed companies’ TFP. Last, proposals are given to the iron&steel industry:(1)To enhance the quality of increasing industrial concentration, we should evaluate the companies’ scale and efficiency, eliminate institutional barriers and choose appropriate patterns of Mergers&Acquisitions; (2) State-owned enterprises should dare to boost structural reform ,hence cure ’empire disease ’,in the ways of achieving technical progress, they must emphasize much more on independent innovation;(3)The government should improve the industry ’s competitive mechanism and avoid market failures due to policy partiality.