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Studies on Economies of Scale and Optimization Strategy of Tea Processing Enterprises-Based on DEA Method

Author: LiYanCheng
Tutor: WuHong
School: Zhejiang University of Finance
Course: Industrial Economics
Keywords: tea enterprises tea processing enterprises scale economy efficiency optimization strategy
CLC: F224;F426.82
Type: Master's thesis
Year: 2012
Downloads: 69
Quote: 0
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Abstract


Issues on economies of scale are one of the focuses of attention of government departments and academia. Tea industry is not only a traditional agricultural advantage industry of China, but also an important industry of people’s livelihood of the current tea producing areas in China. Tea industry is also an important agricultural industry attached importance and supported by the Chinese government because of its larger output value, longer industry chain and stronger drawing capacity of labor force. And tea processing enterprises not only contact with upstream tea growers but also provide consumer goods for downstream distribution enterprises and terminal market in the industry, playing the crucial role that links the preceding with the following. The economic benefits of tea processing enterprises directly influence the sustainable development of the whole industry. Therefore, it is of great practical significance for the thesis to research economies of scale of tea processing enterprises, study the factors that influence its operational benefits, and put forward the project for promoting efficiency optimization of processing enterprises to achieve moderate scale management.This thesis mainly includes the following five chapters:Chapter 1 gives an introduction to the relevant theory and makes a literature review. This chapter firstly discusses the differences and relations among the general principle of economies of scale, economies scale, and returns to scale. Subsequently, this chapter reviews domestic and foreign scholars’research progress on the issue of economies of scale. Finally, a simple analysis on the previous studies is made.Chapter 2 mainly discusses the scale efficiency of tea processing enterprises in China. Firstly, this chapter makes an analysis on the scale economy efficiency of Chinese tea processing enterprises from the angle of tendency of scale alteration, scale efficiency and some other angles. Then, index (CRn) of absolute centralization is employed to measure the concentration of tea processing enterprises in China.Chapter 3 makes an empirical research on the scale economy efficiency of tea processing enterprises based on DEA, which is the focus of this study. Firstly, based on investigation data, this chapter analyzes the practical situation of scale of operation of sample tea processing enterprises. And then the thesis measures every index of efficiency of tea processing enterprises by DEA method. Finally, the thesis puts forward Chapter 4 makes an analysis on impact factors of scale efficiency of tea processing enterprises and researches the optimization strategy based on Tobit, which is also the focus of this study. Firstly, this chapter introduces Tobit model and then constructs the index system of efficiency affecting factors of tea processing enterprises. Besides, by taking the EFF measured by DEA method as dependent variable and taking impact factors as explanatory variable, this chapter finally analyzes the empirical result and proposes the strategy for improving the efficiency of tea processing enterprises.Chapter 5 reaches a conclusion based on the analysis above and gives some advices on the basis of the conclusion.

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