Abstract:

Using first-hand data and data envelopment analysis method, this paper evaluates efficiency performance of forest product processing mills in Northeast-Inner Mongolia state-owned forest areas. Subsequently a multivariate linear regression model is employed to investigate the determinants of mills' efficiency. The results indicate that level of privatization, production scale, financing constraints, payment scheme, level of left-over profits, incentive system for mill managers and intensity of marketing all have significant impact on mills' efficiency.

Key words: state-owned forest areas, forest product processing mills, technical efficiency, data envelopment analysis(DEA)