TFP Growth, Capital Deepening And Economic Convergence

Since the 1978 reform and opening policy,China has implemented a non-balanced development strategy,adopted market-oriented reforms to promote economic development.Although China's economic growth has made great achievements in economic reform and even the performance has been achieved by many people regarded as "China miracle",but recently the sign of a widening gap between some areas is becoming the sharp focus.The current gap between the academic development of regional trends,namely the existence of convergence,and how issues such as convergence can be achieved,that scholars have put forth different views.Therefore,the research on this issue will undoubtedly have an important theoretical and practical significance.Previous studies mainly from the point of view of macro output of the convergence of economic growth,but this article from the convergence of micro-economic growth factors and micro-mechanism perspective deepen their understanding of China's economic convergence. First use Malmquist productivity index will have inter-provincial labor GDP growth for the decomposition of the effects are the accumulation of labor capital and TFP effect,and then his two mechanisms at the core, respectively,were absoluteβ-convergence,the club convergence and conditionalβ-convergence test,reached the following conclusions:First,economic growth convergence of micro-mechanism including both labor capital and TFP two convergent mechanism.Both the absoluteβ-convergence were show clear phased.In 1978-1989,and jointly promote the economic convergence,and in 1989-2004,but appear starting casual trend.Compared with the TFP,the role of labor capital accumulation are more prominent.Second,whether it is the accumulation of labor capital or TFP are the absoluteβ-convergence were show stage in the regional.The midwest within their respective labor capital and TFP in the 1978-1989 annual average has seen an obvious club convergence,in 1989-2004 has not found the phenomenon,and that previous studies in the midwest during the entire existence of the club convergence.At the same time,in the eastern part of the TFP during the entire outstanding performance and not only in 1978-1989,showing a certain signs,and the eastern part of previous studies that exist club convergence,we merely observed that the eastern part of the labor capital during the entire situation.Third,in considering opening up the economy under the conditions of the convergence theory,we believe that international trade, infrastructure,tertiary industry changes,human capital,savings rate on the labor capital and TFP are both produced a positive role in promoting, and labor growth,the domestic trade on both have a negative impetus role. At the same time,we have reached a new conclusion:the government, urban-rural gap,urbanization and the impact of variables in the second industry changes is the "ouble-edged sword",that is:both in the promotion of the accumulation of labor capital,and stopping the improvement of TFP.Finally,according to the research results in this paper,which is based on the regional development of relevant policy recommendations.