Efficiency Measurement of Knowledge -Based Economy with CDEA Method for China and Optimum Methods for Iran

In this paper, Cross Data Envelopment Analysis (CDEA) is used to calculate efficiency of change in the Chinese economy from traditional to knowledge-based economy. For this purpose, at first, the effective input/output indices of a knowledgebased economy are developed and introduced. Then, each index's relevant data for a period of 30 years (1978-2007) which include the Chinese economic transition from a traditional to a knowledge-based one, is compiled and the economy efficiency for each year of the said period is calculated through DEA model. Finally, calculated efficiency of each year is compared together. Due to the rather long period of time, which decreases the reliability of such comparisons, the CDEA method to calculate efficiency is used in these years, too. The results of the applied model show efficiency in traditional economy was 54% in China. With change to knowledge-based economy, it improved to 94%. Based on the fact that Iran is transferring from traditional to knowledge-based economy as well, which has been emphasized in both “the Third and the Forth 5-years Development Plans”, comparison of efficiency transition from traditional to knowledge- based economy in China presents new ideas which will be useful in our planning and decision making efforts.