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The Study on the Technical Efficiency of Chinese Cultural Industry Based on Three-stage DEA Model Shi, Huimin․Jeong, Hong-Yul․Jiang, Qiaoyan The cultural industry is not only an important part of one nation’s soft power but also an important measure of the nation's overall national strength. Since the implementation of the reform-based open-door policy by Deng Xiaoping, Chinese economy has grown at a rapid pace. With the growth in national income, the demand for cultural products has also increased. Numerous research studies must be carried out to find ways of promoting the development of cultural industry. This paper can be regarded as one of such efforts. The paper analyzes the technical efficiency of cultural industry of 30 provinces and cities of China in 2014, using the three-stage DEA model. The result shows that the technical efficiency of a number of regions are affected by environmental factors. Specifically, the demand capacity and technological innovation have a positive influence on the development of the industry. However, such factors as financial support from the government, market scale, level of education are shown to have negative effects on the industry. Another result, obtained after removing environmental and random factors from consideration, shows that the relevant technical efficiency of various provinces and cities tends to decrease, which can be mainly attributed to the substantial decrease in scale efficiency. What is obvious from the study results is that there is a wide range of regional gap in the efficiency variable. The western region is more easily affected by the environmental factors than the eastern and central region, and most regions are shown to have high records in the pure efficiency variable. With these contents as the main body of the paper, some proposals on improving the technical efficiency of cultural industry in China are provided in the concluding section.