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The China State Council promulgated the “Culture Industry Promotion Plan” on 26 September 2009, raising the status of the culture industry to that of a strategic industry. This paper applies a three-stage data envelopment analysis (DEA) model to investigate the efficiency of investments made in the culture industry in 2011 in China. The results show that the overall efficiency of the culture industry in China is still at a relatively low level. The scale of companies in the culture industry is a key factor restricting development. The external environment has a great influence on this efficiency; the efficiency gap between the eastern, central and western areas is obvious and reflects the degree of the environmental impact on the culture industry in these regions. The western region will experience progress if the environment changes. In contrast, the central and eastern regions will see less progress. This paper proposes the following corresponding policy recommendations based on the analysis. (1) China should focus on expanding the scale of culture industry enterprises. (2) We need to accelerate the market-oriented reform of cultural institutional mechanisms. (3) We should pay attention to the efficiency gap between cultural industries in the eastern, central and western areas. We should use government power to support the development of cultural industries in the western region

Research on Investment Efficiency and Policy Recommendations for the Culture Industry of China Based on a Three-Stage DEA