Research On The Differences Of Production Efficiency Of The Service Industry Of China Based On The RTFA

The service industry has gradually dominated with the industrialization process, which are the practical results of the developed countries. So improving the service industry is one of the most important aims of our country's industrialization. Our service industry has progressed greatly, but it is still backward, which is disproportionate with the whole developing situation of our economy. At the same, our service industry has developed unbalanced across the country. So researching the spring of the growth of service industry and finding the factors resulting in the difference among districts are very important for the sustainable development.This paper is based on the service sector productivity. By studying the service actualities, using the 2000-2005 panel data, taking the regional differences as the breakthrough point , we study the production frontier with the new method RTFA. At last, we get the service sectors production productivity, also called the total factor productivity (TFP), which can be divided into technical efficiency and technical progress. We find that there are great regional differences, caused by different reasons.We go on an empirical study about the factors effecting TFP, technical efficiency and technical progress with panel data. The results suggest: Firstly, service sector productivity is related with the operation of the national economy. The growth of GDP is positive correlated with the growth of TFP. And it is realized by the progressing of technical efficiency. Secondly, the level of urbanization has a significant impact on the productivity and both of two parts. It is the most important factor affecting the productivity. Thirdly, another factor is the degree of marketization. Compared with the technical efficiency, it is done by increasing the technical progress. So, the eastern region with higher degree of marketization has higher productivity, the rest has lower productivity, or even negative.At last, proper suggestions are given out to improve the production efficiency.