The Evaluation of E-commerce Efficiency in China using DEA-Tobit model: evidence from Taobao data

Using the analytical framework of DEA-Tobit, this paper investigates the efficiency of e-commerce in China\u27s provinces based on the cross-section data of 31 provinces in China and the data of e-commerce service providers from Taobao’s open platform. The data envelopment analysis (DEA) is used to calculate the technical efficiency and scale efficiency. Furthermore the paper gives an empirical test on the relationship between the scale efficiency and influencing factors by using the censored Tobit model. The results show there are significant regional differences in the efficiency of e-commerce services in provinces of China, and the Real GDP per capita, the seller number on e-commerce platform, the retail sales and wholesale are important reasons for the different efficiency in each province of China. This study provides a domain-specific, integrative approach in evaluating the E-commerce development combining macro data from National Bureau of Statistics of China and micro data from taobao.com