An empirical analysis of total-factor productivity in 30 sub-sub-sectors of China's nonferrous metal industry

Based on the panel data of 30 sub-sub-sectors of China's nonferrous metal industry from 2004 to 2013, this paper utilizes a global data envelopment analysis (DEA) to analyze the total-factor productivity (TFP) of China's nonferrous metal industry from both static and dynamic perspectives. We present the fluctuation of TFP in the nonferrous metal industry during 2004-2013 and analyze the key factors responsible for this fluctuation from the perspectives of production techniques, management and scale. The static analysis results show that the overall TFP of China's nonferrous metal industry is relatively low, and production inefficiency in the mining and smelting industries are two primary sources of this overall TFP inefficiency. There are significant differences among the 30 sub-sub-sectors in TFPs. During our sample period, some sub-sub-sectors experienced rapid growth in TFP, while others remained at a low level. The dynamic analysis results show differences in the key factors affecting the TFPs of three sub-sectors. Technical progress was the biggest contributor to the TFP growth in the nonferrous metal smelting sector, while the rapid increase in scale efficiency was the primary source of TFP growth in both the nonferrous metal mining sector and the pressing and processing sector.