Research On Efficiency And Influence Factors Of Petrochemical Industry Of China

The Petrochemical industry is an important energy industry which has a significant influence on national security, comprehensive national strength and people’s livelihood. With the rapid and sustained development of our country’s economy, the consumption of resources has also been increasing. China has become the world’s second largest economy based on the total GDP, and also the world’s second largest consumer and importer of petroleum resources, thus petroleum resources plays an important supporting role in the development of our country’s economy. This paper takes the efficiency of our country’s Petrochemical industry as its research object. Based on the foreign and domestic industry efficiency theories and empirical research results, we empirically study the static efficiency, dynamic efficiency and the factors affecting the efficiency of our country’s petro-chemical industry, and come to some conclusions and policy suggestionsUsing the data of13listed petrochemical enterprises from2007to2010, we select the number of employees, main business cost, and fixed assets value as input indexes, total profit as output index. Then we research the static efficiency of our country’s petro-chemical industry, using DEA method. We calculate the technical efficiency, decompose it into pure technical efficiency and scale efficiency, and analyze the change tendency and characteristics of the efficiency values. For those enterprises not in the efficiency frontier, we analyze their redundancy of inputs and deficiency of outputs, and propose the efficiency improvement way. We construct different DEA efficiency analysis models not including the number of employees, main business cost, fixed assets respectively, and examine the sensitivity of those models. In addition, we carry out comparative analysis on static efficiency of enterprises with different ownership structures. We calculate the total factor productivity of11listed petrochemical enterprises from2007to2010, using the DEA Malmquist index method, and decompose it into technical progress and technical efficiency change, which is further decomposed into pure technical efficiency change and scale efficiency change. We find that the total factor productivity of China’s petro-chemical industry has been declining, which mainly dues to the technology failure, and also because of the decline of scale efficiency in a certain extent.Then we empirically study the influence factors on the efficiency of China’s petro-chemical industry. We select total assets, the proportion of the first shareholder, the proportion of independent directors in board of directors, the duty depart of Chairman and general manager, the number of listed days, the structure of property rights and the proportion of employees at college degree or above as independent variables, and use Tobit model for analysis. The results show that, total assets, the proportion of the first shareholder, the duty depart of Chairman and general manager, the proportion of employees at college degree or above and the structure of property rights obviously affect the efficiency of petrochemical enterprises; the proportion of employees at college degree or above do not really affects the enterprises’efficiency; too large enterprise scale is not conducive to efficiency improvement; the duty depart of Chairman and general manager is conducive to efficiency improvement; the increase in the proportion of state-owned holding at present is also beneficial to efficiency improvement.Thus we argue that the reasonable control of enterprise scale, the improvement of corporate governance, the introduction of advanced technology and production equipment, the advancement of property right reform and the encouraging development of non-state-owned enterprises are all conducive to the efficiency improvement of Petrochemical industry of China.