Study On The Efficiency Of Chinese Pharmaceutical Industry From An Empirical Perspective

The Efficiency is the core issue of all economic activities, which is related to the success of enterprises and industries. Therefore, studies on the efficiency of Chinese Medicine Manufacturing Industry(CMMI) are significant in theory and practice. Current situation, alteration and factors of CMMI efficiency have been investigated to provide theoretical basis and practical guidance for upgrading CMMI efficiency.Based on economics and management theories, the CMMI efficiency and its factors have been studied systematically for the first time. First of all, an independent efficiency evaluation index system was established. Secondly, the data envelopment analysis (DEA) was employed to study the CMMI efficiency and its dynamic variation. An empirical study has also been done to find out which factors influence the CMMI efficiency by using the panel data. Thirdly, based on the previous research, we gave some policies and suggestions to enhance CMMI efficiency.The results of this empirical study include: (1) From 1998 to 2007, STE of pharmaceutical manufacturers is very different among provinces, and shows the trend of convergence in recent years, The STE of pharmaceutical manufacturers in eastern provinces is higher than the western and central ones. There is no significant difference in TE of pharmaceutical manufacturers among eastern and central provinces, but difference appears in western provinces. Whether from the perspective of different sub-sectors or the whole sectors, the STE of state-owned enterprises is higher than foreign enterprises and other owned enterprises, and the TE of state-owned enterprises is slightly lower than foreign enterprises and higher than other-owned ones. From 2001 to 2007, the STE of Traditional Chinese Medicine enterprises is higher than chemical medicine enterprises and biological medicine enterprise, there is no difference in STE between chemical medicine sectors and biological medicine ones. The TE of chemical medicine sectors is higher than Traditional Chinese medicine and biological medicine sectors, the TE of state-owned enterprises and foreign enterprises have their own advantages in different sectors. (2) From 1998 to 2007, the ECH of medicine manufactures in all regions shows slight progress, and even retrogression in some places. The TECH and TFPCH of medicine manufactures show rapid progress, and the improvement of TFPCH was driven by TECH progress. But the improvement of TECH in different owned enterprises plays different roles in Promoting TFPCH. From 2001 to 2007, the progress of ECH in foreign medicine manufactures and other owned medicine ones is not obvious, there is a slight progress of ECH in state-owned medicine enterprise. There is a rapid progress of TECH in all ownership medicine enterprises, which relies on the TFPCH progress. (3) The factors that influence the efficiency of pharmaceutical industry, human resources and technological improvement, have the maximum output elasticity, which means that a small increase in these two factors will make significant enhance of efficiency in pharmaceutical industry. The presence of state-owned property with a positive output elasticity of efficiency,the efficiency output elasticity of market structure and the rate of firm size change are very low, and the rate of market opening change does not have significant impact on the efficiency of pharmaceutical industry. Geographical factor is not the main one affecting the efficiency of pharmaceutical industry, and its affection is uncertainty.