DEA Malmquist productivity measure with an application to special automobile industry

Abstract

WTO regulations have deeply influenced Chinese custom reform and the progress of automotive industry. Compared with others, the special automobile industry is influenced more but attracts little attention. Many methods can be used to measure the efficiency of companies, among which DEA-based Malmquist productivity index is the one that can measure the productivity change over different periods. Furthermore, this paper studies productivity growth, pure technical efficiency, scale efficiency and allocative efficiency change of a sample of 9 special automobile enterprises which are all listed companies. The result indicates that the corporations gradually adapt to the tariff de-escalation policy, and their competitive abilities increase a lot. As well as the policy's influence, the custom reform not only make China reaches what WTO requires but also accelerates the corporations' development.