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      • Analysis of efficiency of Service Industry in Shandong Province based on the DEA model

        Lin Donghua,Yandong,Zhai Wenxiu 한국유통과학회 2013 한국유통과학회 학술대회 논문집 Vol.2013 No.-

        Purpose - Service Industry in Shandong is developing slowly. This paper is aiming to analyse the efficiency of the Service Industry in Shandong using the Data Envelopment Analysis (DEA) method. The analysis results will be the support for decision making by the upper management. Research design, data and methodology - The paper analyzed the date data of the efficiency of the Services Industry in Shandong through the DEA methods. This is distinguished from the Production Function Method that domestic scholars use, and can test the results based on Production Function Method. In order to ensure the authenticity and reliability of calculation results based on DEA model, the data in the paper comes from “China Annual Statistics Yearbook” and “Shandong Annual Statistics Yearbook”. The DEA method is a nonparametric statistical method, it evaluates from the perspective which is beneficial to Decision-making Units and avoiding confirming the weight of every index in the sense of priority. Results - This paper is aiming to search for the internal dynamic mechanism to improve the efficiency of the Service Industry and expand its research area in Shandong Province, the through the analysis of the efficiency of Service Industry in Shandong using DEA method. The results presented in this paper is that the decision made by the upper management. Conclusions - The results revealed that the low-efficiency traditional Services occupy an important share of Shandong Service Industry, and the high-efficiency of the emerging Services account for a low proportion. The results are more associated with the level of areal economy, and especially restricted by GDP, income level and and technological development. However, the overall efficiency of the Service Industry in Shandong shows an increasing trend year by year, which means there’s a huge development potential in this industry.

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