Chinese and Foreign Sports Industry Development TFP Analysis and DEA Approach Applied Research

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1 Send Orders for Reprints to 239 The Open Cybernetics & Systemics Journal, 25, 9, Open Access Chinese and Foreign Sports Industry Development TFP Analysis and DEA Approach Applied Research Changjun Zhang * Institute of Physical Education, Yangtze University, Jingzhou 434, Hubei, China Abstract: Through analyzing Chinese and foreign sports industry TFP, by applying DEA approaches to detect Chinese and foreign sports product industry TFP fluctuation, and researching on its influence factors targeted at the case, the paper gets Chinese and foreign sports product industry overall TFP index description process from year 2 to 23, gets that Puma, Adidas, and Nike represented foreign sports product industry TFP development in these four years are relative fast, main factors that affect Chinese sports product industry are investment of human resource, investment of researching and development as well as investment of machinery equipment, and development of Chinese sports production industry shows a kind of direct proportion that mainly is regional concentration and production scale. Foreign business proportions and meanwhile enterprises tax bearing growth also has certain impact effects on their sports product industrial TFP. Finally, it puts forward its relative suggestions to provide theoretical basis for Chinese sports product industrial development. Keywords: DEA model, sports health, sports industry, tfp analysis.. INTRODUCTION Sports product industry plays an important impact on sports big fields, improvement of people s living standards is of important promotions to the enterprises development, especially after the successful hosting of Beijing Olympic Games, sports product industry development is even continuously rising, therefore the research will play important roles in Chinese sports product industrial development []. Regarding sports product industry research, formers have made many efforts, and gained certain results [2], such as Wei De-Xiang and others in evaluation on Chinese and foreign sports goods listed companies operation, through analyzing nine Chinese and foreign sports goods listed companies declared financial data from year 28 to 2, finally it got overall comprehensive efficiency mean values were in the rising trend, from which technical progress played an incomparable effects [3]; Li Xun-Jin in Chinese and foreign sports scientific research aspects study, targeted at domestic and foreign government functions, funding sources, contents, sports research system and sports scientific research capacity these fields, he made comparative analysis, and finally put forward relevant opinions [4]. The paper just bases on formers, targeted Chinese and foreign Chinese sports product industry, makes further analysis and research, and finally puts forward that Chinese government should encourage international high-end sports product development in China, introduce sports product scientific research development, increase technical additional value, and form into a perfect sports product service system so as to play main roles in changing Chinese sports product 874-X/5 industry international status and make contributions to Chinese sports undertaking development [5]. 2. DEA MODEL ESTABLISHMENTS DEA model also calls data envelopment analysis approach; it is a kind of relative efficient approach that uses the model available obtained corresponding product frontier to evaluate DMU (decision unit) with its input and output. In enterprises, DEA relative efficiency is distributed between and, enterprises efficiency value in efficiency frontier is. Its advantages are quite a lot, such as: DEA can conduct actual value and target value efficiency analysis, sensitivity analysis and comparative analysis; In DEA, model weight mainly is generated according to data that will not suffer human factor influence, and its unit has indeformable characteristics. To measure Chinese and foreign sports product industry TFP development conditions, the paper adopts Malmquist exponential equation that is set by Fare and others to establish its exponential models, basic form are: M t t t d ( ) ( x, y ) y x, y, x d ( x, y ) 25 Bentham Open ( x, y ) t t ( x, y ) d, = d () In above formula, product input and output amount x, y and period and t period are respectively using ( ) ( x t, y t ), the t period and the period distance functions are t respectively using d and d to represent, for the i+ and the i period output and input ratio geometric mean, if such value is less than, then it proves sports product is also one kind of declining form, and if the value is above, then it proves sports product TFP is a kind of growing trend. Malmquist index can be divided into two kinds, one of them 2

2 Chinese and Foreign Sports Industry Development TFP Analysis and DEA The Open Cybernetics & Systemics Journal, 25, Volume Table. DEA index-based sports goods manufacturing industry factor system table. First Grade Factor Second Grade Factor Definition of Factors Input indicator Output indicator Main business cost Total assets Basic earnings share Income from main business Net margin Net assets income rate Represent economic resources consumption conditions in enterprises operation Enterprises-controlled, monetary measurement-adapted, representative of enterprises scale capital input conditions One of comprehensive reflection of enterprises profitability indicators Main business regular basic income, represents enterprises operational abundant ability Comprehensive reflect enterprises operational final results, represents operational efficiency conditions Comprehensive reflect enterprises profitability, net margin owner s right Table 2. Year 2-23 Chinese sports product industry overall TFP index and decomposition index table. Year Progress Scale Pure Total Factor Productivity (TFP) TFP Growth Rate (%) Mean value is technical progress index and decomposable technical efficiency variability index, from which technical variability index has relationships to distance between product leading surface and effective leading surface, specific conditions are as following: M t t d ( ) ( x, y ) y x, y, x d ( x, y ) t ( x, y ) (, ) x y ( x, y ) (, ) x y d d, = + d d In above formula, d ( x, y ) d t ( x t, y t ) 2 (2) represents sports product technical efficiency variation function relations from i+ to i, and above right side represents measured sports product industry development conditions from the t period to period technical aspect. In order to compare Chinese and foreign sports product industry TFP differences, the paper selects comparison of sports product industry TFP of three international famous brands listed companies in nine countries as key points of researching, the selected twelve brands yearly data reports, selected Chinese and foreign sports product industry important business and turnover are basically consistent. The selected twelve kinds of international and state famous enterprises listed companies, from which data is continuous and conforms to consistency. The paper selected output items and input items all indicators are as following Table. According to above all factors, the paper selects twelve sports listed companies annual report from 2 to 23, after sorting out, it can get all enterprises input and output data in all items, and then gets specific samples values that the paper can apply by handling with the obtained data. 3. CHINESE AND FOREIGN SPORTS PRODUCT IN- DUSTRY TFP EVALUATION For year 2 to 23 sports industry overall TFP index and decomposition index as well as individual TFP index and its corresponding decomposition index, it applies DEAP software to verify step by step, and finally carry out objective evaluation. The paper establishes Chinese and foreign sports product overall TFP index and corresponding decomposition dynamic table as following Table 2. In order to more clearly show mutual relations, the paper draws bar figure as following Fig. (). The paper works with Chinese and foreign sports product overall decomposition dynamic table as following Table 3. In order to more clearly show above indicators relations, the paper draws bar figure as following Fig. (2). By above two tables the Tables 2 and 3 provided Chinese and foreign sports product industry overall TFP index and decomposition index dynamic changing situations from 2 to 23 these four years, we can get Chinese and foreign sports product industry s technical progress, scale efficiency,

3 2392 The Open Cybernetics & Systemics Journal, 25, Volume 9 Changjun Zhang Fig. () China sporting goods industry as a whole decompose TFP index map. Fig. (2) overall foreign sporting goods industry exploded TFP index map. Table 3. Year 2-23 Chinese and foreign sports product industry overall TFP index and decomposition. Year Progress Scale Pure Total Factor Productivity (TFP) TFP Growth Rate (%) Mean value TFP, efficiency and other aspects decomposition conditions in above aspects. In real production, foreign technical efficiency hasn t yet given its effects into full play in technical potentials and resources utilization, while it mainly suffers pure technical efficiency index influence, while in domestic, from the perspective of paper s above four years comparison, it is not ideal in pure techniques that shows negative growth rate so that leads to the aspect technical efficiency reduction. For above analysis results, domestic powerful enterprises have started to focus on relevant problems in above research, such as Li Ning company creates designing research and development center, Anta creates sport biomechanics laboratory, 36 company even sets up research and development center, human engineering laboratory and product laboratory and else, domestic realization in above planning lets comprehensive strength to be obvious promoted, but in technical conversion rate aspect, domestic is still lower that causes China still cannot catch up with some foreign countries. 3. CHINESE AND FOREIGN SPORTS PRODUCT IN- DUSTRY TFP INDIVIDUALS AND DECOMPOSI- TION INDEX EVALUATION To be beneficial to the paper analysis, the paper lists above four years seven enterprises sports product companies TFP and corresponding decomposition index dynamic situations as following Table 4. From above Table 4, it is clear for us that Chinese sports product industry TFP in 2 is in the rising trend, especially for 36, X-step international holdings, Anta sport that appear a boom, due to international market impacts in

4 Chinese and Foreign Sports Industry Development TFP Analysis and DEA The Open Cybernetics & Systemics Journal, 25, Volume Table 4. Year 2-23 Chinese and foreign sports product listed companies TFP decomposition index table. Company Name Year Progress Pure Scale TFP TFP Growth Rate (%) Li Ning Mean value degree Mean value X-step international holdings Mean value Anta sports Mean value Puma Mean value Adidas Mean value Nike Mean value

5 2394 The Open Cybernetics & Systemics Journal, 25, Volume 9 Changjun Zhang Table 5. TFP technical efficiency and technical progress influence factors analysis table. Independent Variable Dependent variable TFP Progress Pure Scale EI.256*** (7, 52).978*** (5.43).23*** (2.35).84*** (6.3).5*** (2.533) Human.726** (3.98).5*** (2.35).2224*** (9.295).63*** (5.526) R&D.454*** (2.765).472*** (2.627).78*** (5.835).72*** (.452) POE.2*** (4.364).4*** (.432).2** (2.5) Scale.5** (3.743).78** (2.68).2*** (8.5) NC.752** (.456) -.34*** (-5.2).8*** (2.69) SOE.45*** (8.79) -.4*** (-3.268) AR().988*** (2.365).226** (5.648).59*** (-.98) Tax -.246** (-.992) -.75*** (-2.363) -.57** (-4.43) -.25** (-2.7) ***.2***.799*** CR4 (-3.449) (2.929) (5.538) 2 R After adjustment F statistics D.W value *It represents to arrive at significant correlation in the level.;**it represents to arrive at significant correlation in the level.5;***it represents to arrive at significant correlation in the level.; 2, domestic and overseas sports product industry development is in the negative growing trend. From the table, we can also see that since 2, technical input and technical progress lead to 36 and X-step international holdings TFP appearing a kind of sharp increasing, while domestic Anta and Li Ning have reduction due to extrusion of TFP storage volume. Foreign sports product industry, due to America and other developed countries economic recovery, it lets Nike company growth trend shows the negative growing state, while for Puma and Adidas, due to Germany and other countries economic continuous intense growing, their TFP growth is above 2%. The paper established Chinese and foreign sports product industry TFP comparison is not just for testing its decomposition index but mainly for researching on its influence factors so that can let Chinese sports product industry to play a positive role in future development to improve Chinese sports product industry TFP. According to formers researches experiences, the paper adopts the influence factors variations, which mainly include enterprise tax burden, enterprise concentration ratio, new product ratio, average size of enterprises, domestic business ratio, foreign business ratio, human capital, investment in research and development as well as investment in mechanical equipment. For panel data s possible hidden serial correlation and heteroscedasticity problems, the paper applies stata software s least square method to analyze, obtained results are as following Table 5. By above Table 5, we can get : ) Enterprise scale efficiency is positively related to enterprise scale and enterprise concentration ratio, from which the most important influence factor belongs to enterprise scale, while enterprise scale efficiency is positively related to enterprise human resource, investment in research and development, as well as investment in mechanical equipment; 2) Enterprise pure technique shows a kind positively related influence state with human resource and equipment investment, and is the main influence factor, enterprise new product investment is bigger and then pure technical efficiency will be lower, while enterprise scale becomes

6 Chinese and Foreign Sports Industry Development TFP Analysis and DEA The Open Cybernetics & Systemics Journal, 25, Volume bigger than pure technical efficiency accordingly will be lower. Therefore it proves the causes for current China sports product industry constantly appear new products, but pure technical efficiency is still low; 3) Enterprise technical efficiency show a kind of positive relations with mechanical equipment, human capital investment, research and development investment and new product ratio, from which minimum influence belongs to enterprise concentration ratio and enterprise scale, while the maximum influence belongs to scientific research investment, therefore it can prove enterprise scale and enterprise technical efficiency are not in a proportional relationship, it is mainly up to technical factors; 4) Enterprise research and development investment and mechanical equipment investment are important factors to drive technical progress, on which human resource impacts are not obvious. It is because that Chinese and foreign business ratios relative contribution rate is bigger in technical progress, and tax burden growth will play an important promoting roles in enterprise technical development; Enterprises mechanical equipment research and development as well as human resource driving TFP are uppermost influence factors, the factor is of highest impacts on TFP. Domestic business contribution rate improvement to TFP growth is obviously lower than that in overseas, sports enterprise concentration ratio and scale is of good promotions to TFP, the bigger enterprises sports product industry TFP will be bigger. CONCLUSION By Chinese and foreign sports product industry overall TFP index description process from 2 to 23, combine with tables, we can get that Puma, Adidas and Nike represented overseas sports product industry TFP development in these four years are faster, average growth rate is 7%, and meanwhile sports product industry overall development trend is rising, but comparing to overseas, its development is slower; on a whole, from year 2 to 23, overseas sports product industry technical efficiency index has increased by. percentage, and technical progress has increased by 7%, which mainly because overseas techniques still more advanced than domestics; domestic sports product industry technical progress index growth rate remains 8%, while it not rises in technical efficiency but drops, the 8% growth rate in TFP actually is lower than overseas. Chinese sports product industry main influence factors are investment in human resources, investment in research and development and investment in mechanical equipment, those positive related to Chinese sports product industry development are mainly regional concentration and production scale. Foreign business ratio, and meanwhile enterprise tax burden growth still have certain impacts on their sports product industry TFP. For above conclusion, it puts forward following suggestions that in order to change Chinese sports product industry international status, China s government should play main roles in them, and should encourage international high-end sports products to develop in China, introduce sports product scientific research development, increase technical additional values; it can introduce advanced techniques and equipment as well as management staff and scientific researchers through acquisition of foreign famous brands enterprises; and can also coordinated develop relevant industries by optimizing development environment, and then form into a perfect sports product service system. CONFLICT OF INTEREST The author confirms that this article content has no conflict of interest. ACKNOWLEDGEMENTS Declared none. REFERENCES [] P. Chen, Z. Qin, Y. Yin, and C. 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Received: June, 25 Revised: July 29, 25 Accepted: August 5, 25 Changjun Zhang; Licensee Bentham Open. This is an open access article licensed under the terms of the ( which permits unrestricted, noncommercial use, distribution and reproduction in any medium, provided the work is properly cited.