Integrating Linkage Effect Analysis Using I-O Method and DEA-Oriented Performance Assessment on China's LED Industry

Input-output (I-O) analysis and data envelopment analysis (DEA) are tools that both can be used in study on the production process. Whilst these two types of model are similar in structure, I-O analysis is directed to assessing performance consequents to the other sectors as a basis for determining the role of an industry and DEA to assessing performance consequents to the industry itself as part of development planning function. This paper is a joint application of I-O analysis and DEA to study on China's LED industry. This study, therefore, has two major goals. The first is obtaining at least a preliminary indication of the role of the LED industry by addressing inter-industry linkage effects in 42 sectors. The second goal is getting some useful information for industry development planning through examining input-output efficiency.