Research On The Theory Of Decomposd For Labor Productivity And Its Application In China Industry

Productivity is the eternal theme of people's economic activity and one of the most economic variables.As the advantage of easily understanding and calculating, labor productivity is extensively used in the field of economy and management.The way of industrialization in China is profoundly affecting labor productivity of Chin's industry,and the improvement of labor productivity for China's industry also pushes China's industry entering "Powerful Manufacturing Country".However,the way of industrialization is long in China.To increase the competition of China's industry,we must know about the reason of change for Chin's industrial labor productivity,and summarize its advantages and disadvantages.The labor productivity's decomposition that can disclose factor to affect labor productivity is jump-off point of this research.The paper analyzes how technology, management and investment to effect labor productivity and its decomposition factors. Then,the paper summarizes convergence trends of provincial industrial labor productivity and its decomposition factors,and exposes the reasons of provincial industrial labor productivity's difference.At last,model of labor productivity's decomposition is used enterprise management by case means.The main contents of this paper are organized as follows:(1) In this paper,based on data envelop analysis's model of C~2R to denoted constant returns to scale and BC~2 to denoted variable returns to scale,labor productivity is decomposed to technical efficiency,pure technical progress,changes of scale efficiency of capital per labor and efficiency of capital intensity.Analyzing results that quadruplicate decomposition of labor productivity was used China's provincial industrial statistical data from 1988 to 2006 show that this decomposed means is reasonably and feasible.What's more.Quadruplicate decomposition of labor productivity is helpful to understand influencing factors that affect labor productivity. Based on those influencing factors,we can put better forward suggestions to improve labor productivity. (2) Used capital per labor as index to measure capital deepening,the relationship was analyzed between capital per labor and China's provincial industrial labor productivity by the means of decomposition for labor productivity and econometrics. Research shows that china's provincial industry appears the trend of capital deepening, and capital deepening increases the efficiency of capital intensity that promotes labor productivity.If current period's capital per labor increases 1%,capital intensity efficiency of current period increases 0.45%and If prior period's capital per labor increased 1%,capital intensity efficiency of current period increases 0.23%.However, capital deepening blocks the improvement of scale efficiency of capital per labor.If current period's capital per labor increases 1%,scale efficiency of capital per labor current period declines 0.017%,and If prior period's capital per labor increases 1%, scale efficiency of capital per labor of prior period declines 0.012%.Technical efficiency and pure technical progress don't exhibit steady co-intergation's relationship with capital per labor,and that result to that co-intergation's relationship exists between capital per labor and labor productivity.In general,China's provincial industrial capital deepening increases China's provincial industrial labor productivity, but the growth rate of labor productivity is less than growth rate of capital deepening because capital deepening declines scale efficiency of capital per labor and weakens efficiency of capital intensity.Research shows capital per labor is Granger cause of scale efficiency for capital per labor and efficiency for capital intensity,which means increasing capital per labor can enhance labor productivity,and the process of pursuing the improvement of labor productivity leads to capital deepening.However, capital deepening in China's provincial industrial doesn't really affect pure technical progress and technical efficiency.(3) The paper gets convergence's character of China's provincial industrial labor productivity by the means of section analysis and time series analysis.The result of convergence analysis to China's provincial industrial labor productivity,its affecting factors and capital per labor show that pure technical progress in China's provincial industry exists distinctly convergence during 1988 and 2006 because technical barrier eliminated in China's technical market.Market's competition makes enterprises to improve technical level which also promotes convergence of China's provincial industrial labor productivity.Convergence trend of efficiency for intensity capital and capital per labor is weaker than labor productivity and pure technical progress.The reasons of capital per labor's weak convergence could be that more advanced manufacture equipments which usually means high prices are invest to keep industrial advantages in developed provinces,but developing provinces that depend on the advantages of factor endowment can adopt equipments of relatively ripe technology that would decrease investment.This situation also proves that developing provinces' economy can overtake developed provinces' by advantage of backwardness.The convergence's trend of efficiency of capital intensity and efficiency of capital per labor is coherent because these two variables have high correlation.However,technical efficiency and scale efficiency of capital per labor is distinct divergence during 1988 and 2006.Those two variables' divergence shows that management's level is very different among provincial industry.If difference of labor productivity would be decreased among provinces,technical efficiency should firstly be decreased among provinces.Divergence of scale efficiency for capital per labor results from difference of industrial structure and level of production technology among provinces.All indexes don't showσ-convergence,which can think that growth rates of some indexes in developing provinces are higher than developed provinces',but absolute value of those indexes don't decrease.In the sum,the trend of pursuing has came forth industrial labor productivity between developing provinces and developed provinces,but the pursuing course is long.The analysis of technical selection's path dependence shows that technical selection is the course of depending on definite path.If labor productivity should be improved,different ability should be developed,which depended on the advantages of factor endowment and character of requirement because of provincial competition.In the paper,differences of labor productivity's growth rate that is computed through net value of industrial products or industrial added value and number of employee are much less compared per capita gdp's that is computed through total population of provinces.As the result,the convergence's conclusions that are computed through those two means are different.The reasons of different conclusions are that provincial industrial labor productivity existsβ-convergence,but the trend of convergence doesn't promote convergence of provincial economical growth because of difference among provincial industrial scale.(4) In the paper,rule extraction based on decision tree classification algorithms is used to get the effect of labor productivity's affecting factors how to affect provincial industrial labor productivity.The research finds that the most affecting factor to provincial industrial labor productivity is efficiency of capital intensity. second factor is technical efficiency,and next factor is scale efficiency of capital per labor.Pure technical progress doesn't almost affect the difference of provincial industrial labor productivity.The determinant of industrial labor productivity is investment.In China,industrial development still depended on extensional development,and didn't depend on connotative promotion that means improvement technology and management.