Abstract: By using the three stage Data Envelopment Analysis (DEA) model, the industrial production efficiency of China in 2009 is studied. The results indicate that a three-stage DEA model is more reasonable than the traditional DEA method for measuring the efficiency of industrial production; the variables of the level of resource utilization, the per capita consumption, the per capita GDP, the ratio of financial expenditure to GDP, the ratio of private capital to total capital, and the level of openness to the outside world have significant effects on industrial production efficiency, and each province in China should strive to improve the environmental factors and create a favorable environment for improving the industrial production efficiency; each province should take the measurements to improve the technical efficiency and expand the industrial production scale, strengthening the internal driving force of industrial production efficiency according to their own types of industrial production efficiency.

Key words: industrial production efficiency, three-stage DEA model, pure technical efficiency, scale efficiency