The efficiency and productivity for manufacturing industries in China, with network structure considering undesirable output

Abstract

Traditional DEA models have never considered the dynamics of the productive process and undesirable output simultaneously. This paper discovers a new network DEA model considering undesirable output and evaluates the efficiency of the Chinese 28 different manufacturing industries. Meanwhile, Malmquist TFP index is also applied to analyze the productive process. The empirical results indicate that: (a) Efficiency figures evaluated by new network DEA model are more accurate. (b) Low efficiency of industrial pollution solutions should be responsible for overall efficiency. (c) The general China's industrial TFP gradually rises. However, it is just an alternative growth instead of a continuous one.