Choosing competitive industries in manufacturing of China under low-carbon economyA Three-stage DEA analysis

摘要

Purpose - This paper aims to explore true technical efficiency in order to select the most competitive manufacturing industries in China. And the paper intends to discuss how environmental variables measured by energy consumption affect performance indifferent industrial sectors under the restriction of low-carbon economy.Design/methodology/approach - In order to measure the calculated efficiency of industrial sectors more accurately, Three-stage DEA model is presented in the empirical analysis using data from 2007 to 2010 covering 29 manufacturing industries in China. The advantage of using this method is enabling us to separate the managerial factor from external environmental factors and random errors factors on the technical efficiency.Findings - The results using this Three-stage DEA model show that textile manufacturing sector has the highest technical efficiency, and when environment variables are not considered, efficiencies in machinery and electronics manufacturing industries have a significant increase. Moreover, this empirical model enables us to evaluate the technical performance in various manufacturing sectors more accurately.Practical implications - This study provides a useful efficiency measurement tool (Three-stage DEA model) to calculate technical efficiency among different industrial sectors. Technical efficiency plays a key role in building the competitiveness of manufacturing industry. Based on the objective efficiency evaluation, the paper can make a better selection of the most competitive industries. Originality/value - The paper contributes to the existing literature by developing a Three-stage DEA to examine thetechnical efficiency and competitive power of manufacturing sectors in China. This study has great policy implications for the research of China's manufacturing in both ideas and methodology.