Volume31Number2June2015pp.docxVIP

● Volume 31 Number 2 June 2015 pp. 000-000 ●The Relative Efficiency of Container Terminals in Small and Medium-Sized Ports in ChinaZi-Yao DING*, Geon-Sik JO**, Ying WANG***, Gi-Tae YEO**** I. Introduction II. Literature Review III. MethodologyIV. Empirical Analysis V. Conclusion and Future Work AbstractThe promotion of domestic consumption in China will gradually ramp up the small and medium-sized port container industry, and this will require greater port efficiency and an updated development strategy. The aim of this paper is to evaluate operational and productivity efficiency change in 21 coastal small and medium sized-port container terminals in China. The first step was carried out using data envelopment analysis (DEA) and the Malmquist productivity index (MPI), and the factors affecting productivity efficiency change were then estimated and quantified using Tobit regression. The empirical results indicate that the most efficient terminals are the Rizhao and Lianyungang port terminals. Furthermore, the terminals that hold a share of more than 50% of Chinese state-owned shipping line show the highest increase in productivity efficiency change. Key Words : Small and Medium-sized Port (SMP), Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI), Tobit RegressionI. IntroductionDuring the Chinese “two meeting” between the National People’s Congress and the Chinese People’s Political Consultative Conference, Premier Wen clearly stated in the “Government Work Report” that China should make a strong commitment to domestic demand expansion as its long-term strategy for economic development. The focus of economic growth in China should also shift from its current export and investment-led growth model to a consumption-based model. The domestic demand-led economic development model will not just change the economy but will also affect supply structures in China and promote the development of China’s domestic container shipping ports.In the domestic trade c