Technical Efficiency in China's Steel Industry at Firm-Level

摘要

China's steel industry has developed over last 60 years into the world biggest. China accounted for 36.4% of world steel production and 43.3% of world total consumption in 2007. It has driven by rapid modernization of its economy, construction, infrastructure and manufacturing industries. Maintaining and enhancing productive efficiency is a precondition for competitiveness of the Chinese firms in the current world market. In this project we use the firm level data of China's steel industry to measure the levels of technical efficiency at the year of 2007. We use the a grand frontier applicable to all firms and a group frontier specific to firms from any firm size and ownership type in order to evaluate and compare their efficiencies. The results of this project can be used to separately identify how firm size and proprietary of a firm affect its performance.