Analysis On The Total Factor Productivity Of Domestic Enterprises And Foreign Enterprises In Guangdong's Manufacturing Industry

The manufacturing sector is a foundation industry of the national economy. Its development indicates the development of the market economy and the nation's comprehensive ability.After more than 30 years of reforming and opening up, Guangdong's manufacturing industry is developing very quickly. As a big economy province of export-oriented, the number of foreign investment enterprise manufacturing has increased.The scale become bigger, the Industries field became more successful. Foreign and domestic manufacturing industry has made outstanding contributions for the economic growth in Guangdong Province and often be regarded as the economic engine.Guangdong is one of the biggest provinces which produce many manufacturing products; however, it mainly depends on high input, high energy consumption of the traditional extensive development mode. Irrational industrial structure, become an obstacle to the development of deep-seated reasons for the industry. Therefore, the study of the domestic and foreign enterprises change of the total factor productivity (TFP) will help us understand the development of Guangdong's manufacturing industry, the promotion of the transformation and the upgrading of the manufacturing sector and the sustainable development of the future has an important practical significance.In this paper, the author use the DEA-based Malmquist index approach and the manufacturing sector is subdivided into 27 sectors, according to factor intensity and domestic and foreign manufacturing division. From different perspectives, we have discussed the domestic and foreign manufacturing's TFP, technical efficiency and technical progress of changes. The results showed that:During the 1998 to 2009 Period, Guangdong domestic and foreign manufacture's TFP have been greatly improved in all sectors, of which Mainly depends on technological progress, while the contribution of technical efficiency is relatively weak. With relatively high efficiency of domestic and foreign manufacturing is the technology-intensive industries, while the less efficient industries concentrated in the traditional labor-intensive industries. The reason is mainly due to the low technical efficiency. The productivity of the Domestic companies is more than the foreign enterprises in some industries through its relentless development, Catching up with the same effect exists between foreign-funded enterprises. Guangdong vigorously develops the electronic information industry and transportation equipment machinery industry which productivity in manufacturing precedents has made considerable development. Finally, this paper summarize the results and the provides relevant policy suggestions for Guangdong's manufacturing to improve productivity level and transform the economic growth pattern.