Research On Changes And Influencing Factors Of Total Factor Productivity (TFP) In China Tobacco Industry

The Chinese Tobacco Industry, standardized and controlled by government through national monopoly, carries out with an exclusive sales system; it has made an outstanding contribution to the national finance cumulation since Opening up. With the developments of socialist market economy and the going-on economy globalization, some original backing conditions have not existed or changed profoundly. Chinese Tobacco Industry is facing serious challenges, which resulting from system obstacles, market changes both home and abroad, and customers' need for healthy products. Facing the new development surrounding, whether Chinese Tobacco Industry adopts the original development method relying on simple factor drive growth or new development methods and the influence factor to the new development methods have been the urgent problems. Therefore, Researching on the total factor productivity changes of Chinese Tobacco Industry and its influencing factors is academically and practically meaningful.Giving one premise that elasticity coefficients of capital and labor are constant respectively during the whole observation period, this article adopts the correlated theories and standpoints of Industrial Economics, Computation Economics, West Economics and Management Science. Based on TFP principle and measure, it measures and analyses the TFP of Chinese tobacco Industry from 1983 to 2005 and a the change of it and gets its contribution rate to output, through comparing all methods of measure of TFP, using C-D production function. Then we find the problems of Chinese Tobacco Industry development existing in the process of TFP changes. Moreover, it brings forward some advice and policy to improve competition and capability of Chinese Tobacco Industry to accommodate market changes.