Methodology for Analysis of Chinese Railways

Abstract

Efficiency in a railroad can be influenced from two sources: externally and internally. While it is obvious that a railway’s divisions or business units themselves determine the operational efficiency of the enterprise, one could question the influence of an external regulator and thus the importance of the latter for the analysis of Chinese Railways’ efficiency. However, even railroad sectors that are highly liberalized (like in the UK) still face an external regulatory body, which might be government controlled or at least answerable to the government. If not the government itself, at least such an external regulatory body can exert significant influence on a wide range of business decisions within the railroad, for better or worse. Therefore, it is imperative to consider its role and degree of intervention.