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Study on the efficiency of logistics industry in China based on three- stage DEA model

Bangquan Yan, Jiansheng Zhang

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Abstract

The paper analysed the efficiency of logistics industry in 31 provinces of China in 2009 by three-stage DEA model. The empirical results are as follows: firstly, the technical efficiency of 31 provinces is low, with the average of 0. 468, and the reason is the lack of scale efficiency; secondly, the development of logistics industry in East, Central and West of China differs wildly, specifically speaking, the one in East of China is the best and the one in West of China is the Worst; thirdly, if the effects of exogenous environmental variables and random shocks are not controlled, the pure technical efficiency of 31 provinces will be underestimated, and scale efficiency value will be often overestimated which will lead to the underestimation of comprehensive technical efficiency.

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What this paper is about

The paper analysed the efficiency of logistics industry in 31 provinces of China in 2009 by three-stage DEA model. The empirical results are as follows: firstly, the technical efficiency of 31 provinces is low, with the average of 0. 468, and the reason is the lack of scale efficiency; secondly, the development of logistics industry in East, Central and West of China differs wildly, specifically speaking, the one in East of China is the best and the one in West of China is the Worst; thirdly, if the effects of exogenous environmental variables and random shocks are not controlled, the pure technical efficiency of 31 provinces will be underestimated, and scale efficiency value will be often overestimated which will lead to the underestimation of comprehensive technical efficiency.

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OpenAlex reports 2 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

The paper analysed the efficiency of logistics industry in 31 provinces of China in 2009 by three-stage DEA model. The empirical results are as follows: firstly, the technical efficiency of 31 provinces is low, with the average of 0. 468, and the reason is the lack of scale efficiency; secondly, the development of logistics industry in East, Central and West of China differs wildly, specifically speaking, the one in East of China is the best and the one in West of China is the Worst; thirdly, if the effects of exogenous environmental variables and random shocks are not controlled, the pure technical efficiency of 31 provinces will be underestimated, and scale efficiency value will be often overestimated which will lead to the underestimation of comprehensive technical efficiency.

Key concepts: China, Scale (ratio), Stage (stratigraphy), Empirical research, Value (mathematics), Environmental economics, Business, Economics

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