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Chinese Journal of Management Science

Chinese Journal of Management Science ›› 2008, Vol. 16 ›› Issue (4): 140-147.

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The Comparison on the Impacts of R&D and Advertising on Technical Efficiency of Chinese and Japanese Household Appliance Enterprises

HE Feng1, CHEN Rong2   

  1. 1. School of Economics and Management, Beijing University of Science & Technology, Beijing 100083, China;
    2. School of Economics and Management, Tsinghua University, Beijing 100084, China
  • Received:2007-10-09 Revised:2008-07-28 Online:2008-08-31 Published:2008-08-31

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Abstract: Based on SFA and DEA approaches and on the sample of dozens of Chinese and Japanese household appliance listed companies during 2001 to 2005, this paper makes a comparative study on the firm's market power efficiency and profitability efficiency.Then makes an exploratory research on the effect of R & D and advertising to the two types of firm technical efficiencies by DEA-TOBIT and Battese & Coelli (1995) SFA models.The empirical results show that R & D impact significantly and positively the two technical efficiencies in long-term in highly competitive household appliance industry, however the similar relation between advertising and the two technical efficiencies cannot be verified.

Key words: research &, development, advertising, technical efficiency, DEA, SFA

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