Font Size: a A A

Research On Total Factor Productivity Of China’s Service Industry

Posted on:2014-07-20Degree:DoctorType:Dissertation
Country:ChinaCandidate:M H JiFull Text:PDF
GTID:1269330425965193Subject:Quantitative Economics
Abstract/Summary:PDF Full Text Request
In the1980s, the world economy began to transform to the service economy, at present, theworld has entered the era of the service economy, service industries accounted for70%of globalGDP, and it has become the dominant force in leading global technology innovation and businessmodel innovation. At the support of national and the local policy, the service industries in ournation develop well generally. However, compared with developed countries and the whole world,the proportion of value added of service industries always hovers at40%, which is even lowerthan some less developed countries, and the regional imbalance of service industries in China hasbeen increasingly prominent, which has become a problem in keeping regional balance in China.According to the economic growth theory, factor accumulation and productivity are the two mainsources of output growth, subject to resource constraints, factor accumulation can not bringsustained growth, and only the productivity increasing is the inexhaustible motive force foreconomic growth. Well, examining the development and the regional differences in China’sservice industry from the viewpoint of TFP has become the purpose of this article.The article is an empirical research basing on the economic growth theory, services theory,and productivity theory and using the methods of statistics, econometrics and so on. The articleexamines the regional disparity of China’s service industry output and total factor productivity,researches the impact and contribution of service industry to the growth and regional disparity ofservice industry, analyses the factors of TFP of service industry. From a practical perspective,these analyses will provide an useful reference for promoting the service industry developmentpattern and imposing the coordinated development of regional service industry. Full sevenchapters, the main contents are as follows:Chapter1is the introduction of research background and review of related literature. Thischapter introduces the development trends of world service industry and the characteristics ofChina’s service industry; sorts out and reviews domestic and foreign relevant research,.Chapter2is the introduction of relevant theory, methods and data processing. The chapterdescribes the theories of service industry first, outlines the development context of serviceeconomy theory; then it introduces the methods of measuring TFP widely used in empiricalresearch such as Solow residual method, stochastic frontier analysis and data envelopment analysis and compares their advantages and disadvantages; finally it describes the samples, datasources and processing used later, the process of capital stock of service industry is accounted indetail.Chapter3is the measurement and analysis of the regional disparities of China’s serviceindustry. This chapter takes the output per worker of service industry as an object, inspects theregional differences of the output of China’s service industry and its long-term trends in1993-2010. The methods used in this chapter to measure regional disparities includes maximumand minimum ratio, coefficient of variation, Nich index and Theil index. The results show that thedevelopment gap of the output of regional service industry has the increasing trend.Chapter4is the calculation of the TFP growth and its composition of China’s serviceindustry. The main task of this chapter is to measure the technical efficiency as well as TFPgrowth and its composition of China’s service industry, the method is the combination of SBMsuper efficiency model and Malmquist index, SBM super efficiency model is developed on thebasis of non-parametric DEA model. The results show that: from1993to2010, the averageannual growth rate of TFP of China’s service industry is0.83%, the average annual growth rate oftechnological progress is2.4%, and that of technical efficiency is-1.5%, so technological processis the force for TFP growth of China’s service industry.Chapter5is the estimation of TFP level and the relationship between TFP level and regionaldisparities of output for China’s service industry. The paper uses Solow residual method tomeasure the TFP level of service industry of China’s provinces, on which basis, the papercompares the distribution of the TFP level and output of service industry using kernel densitydistribution, while also examines and analyses the impact of TFP level and inputs on the regionaldisparity of output of service industry using variance decomposition method. Results are that thecontribution of TFP level to the output gap of service industry increases gradually, it isforeseeable that TFP level will contribute more and more to the output gap of service industry, andbecome the major factor.Chapter6is the convergence test of TFP growth for China’s service industry. After reviewingsome literatures about convergence, the paper examines the convergence of provincial TFP ofservice industry and compares it with the mode of output convergence. To test the impact of TFPconvergence on the service output convergence, a non-parameter decomposition frame is drawedinto the paper decomposing the output growth into the effects of technical progress, technicalefficiency change, capital accumulation and humane capital. Next, the paper uses the Maudosmodel to estimate the contribution of TFP growth, humane capital and capital accumulation to theservice industry output convergence. The results show that the cross-country and three regionshave no absolute convergence in TFP and output, only exists conditional convergence; the divergence of TFP growth is the significant force of services output divergence under thecombined effect of technical progress and technical efficiency, which means the disparity of TFPgrowth has greater impact on the convergence of the service output.Chapter7examines some main influential factors on the provincial TFP of service industryusing the fixed effects model of variable coefficient panel data. The result shows that the level ofurbanization, the opening degree and the marketization process have positive impact on the TFPgrowth of service industry, on the contrary, the government control has negative impact on theTFP growth of service industry. So, the next step we should give impetus to the reform of servicemarketization and institution with a great effort, such as breaking the monopoly, introducing thecompetition, releasing the energy, and formulating the fair and uniform policy to break regionalsegmentation, undoubtedly, the first of which is based on the government’s own reform inexchange for market development.This study has the following innovations:First, for the deficiencies of traditional DEA method, the article uses SBM super efficiencymodel to estimate the technical efficiency of China’s service industry, the method can not onlytake into account the slack problems of inputs and outputs, but also achieve further differentiatingand sorting for the efficient DMU; the SBM super efficiency model is combined with Malmquistindex to measure TFP growth of China’s service industry, the results of which are more accurateand scientific. Second, a variety of statistical methods (such as coefficient of variation, Nich andTheil index)are used to examine the regional differences of the development of China’s serviceindustry, and empirical analyses(such as kernel density estimation and variance decompositionmethod) are used to verify the TFP level has more and more contribution to the regionaldifferences of the output of service industry, various ways support mutually which enhance therobustness of the results. Third, a non-parameter decomposition frame is drawed into the paperdecomposing the output growth into the effects of technical progress, technical efficiency change,capital accumulation and humane capital, and productivity convergence models are used toempirically test the impact of TFP convergence on the output convergence of service industry, theconclusion is TFP growth is the main reason for the change of regional disparities of serviceindustry output.
Keywords/Search Tags:service industry, total factor productivity, capital accumulation, human capital, convergence
PDF Full Text Request
Related items