Efficiency Of The Midwest Circulation Industry Based On DEA Method

The circulation industry is an important linkage connecting the social productionand consumption and promotes all kinds of industrial sector growth. And it plays animportant role in reducing transaction costs, with strong economic externalities. Sincethe proceeding of reform and opening up, our circulation industry has entered a rapiddevelopment period, and plays an active role in economic growth and industrialstructure optimization and adjustment. However, our circulation industry is still in thetransformation stage from the traditional circulation to the modern circulation. Thereare still many problems in the Midwest, especially low-level circulation industry,regional development imbalances, circulation industry inefficiency. It is of greatsignificance for the efficient allocation of social resources and enhancing theeconomic growth of endogenous motivation to accelerate the development of theMidwest circulation industry and improve circulation industry efficiency.In this paper, we base on the theory of modern circulation industry development,drawing on previous research experience, using qualitative and quantitative researchmethods to carry on the empirical analysis for combining the efficiency of circulationindustry from2009to2011of Chinese central and western regions. The result showsthat the lower overall efficiency value of the circulation industry of the wholesale andthe retail is mainly due to pure technical efficiency is non-effective and the efficiencyvalue of central region is higher than of the western region, and there are significantregional disparities. Western regions are generally increasing returns to scale. Bycontrast returns to scale in the central region shows a decreasing trend. Technicalefficiency and scale efficiency’s gap of transportation, storage and postal services ofthe Midwest province is not big, but the pure technical efficiency is still low.Technical efficiency and scale efficiency of the central region is higher than thewestern region, but the pure technical efficiency in the western region is slightlyhigher than central region, and the scale diminishing returns is evident. Finally, the paper combines with the actual development of the regional circulation to proposespecific policy recommendations that improved the efficiency of circulation industryand reduced regional development disparities.