A Study On The Fluctuation Of TFP And Its Influential Factors Of Wuhan Manufacturing Industry

The manufacturing is a basic industry of the national economy, which plays a very important part of modernization. In Wuhan, manufacturing industry is the most important pillar and the engine promoting the high-speed advancement of national economy. According to the analysis of experts, to Wuhan, manufacturing industry is the key to the realization of industrialization. Therefore, the research on the TFP growth of manufacturing industry of Wuhan has important realistic meaning. First, it can help us to understand the development state of Wuhan manufacturing industry; Second, it's result can promote the development of Wuhan manufacturing industry in the future.The paper in the beginning of analysising Wuhan present situation, With Malmquist index method, which based-on distance functions, the paper measured the growth of TFP, the change technical efficiency, and the technological progress of Hunan's manufacturing industry. My study shows: During 1996-2005, the technical efficiency levels are generally low, this is unanimous with the research conclusion of forefathers'. In this period, the levels of technical efficiency, technology and TFP increase in several years and decrease in the others. But since 1999, most of they have been in a state of increasing continuously, and the rate of increase rises year by year. In addition, my study shows that the development of manufacturing industry of Wuhan during these years, not only depends on the investment in new technology(technological progress), but also stems from the improvement of technical efficiency. This is different from the research conclusion of forefathers', the conclusion indicates that the development of manufacturing industry of Wuhan is in a good state in recent years. The regressive analysis of the influences of Malmquist index, the change of technical efficiency and technological progress shows that the enterprise Market competition and the degree of the manufacturing industry to the outside world restricts TFP growth of manufacturing industry of Wuhan. Meanwhile, the lowness of the productivity level of state-owned and state holding enterprises, and the poor performance of small-sized enterprise hindered the growth of TFP of Wuhan manufacturing industry. Finally, through the provides the synthesis of the analysis result above mentioned, the paper gives some advice to further enhance the efficiency in manufacturing industry. And we point out that the increasing degree of investment to corporation scale, the further reforms of property rights and market system, the increasing degree of the manufacturing industry to the outside world, and the enhancement in percentage of market share to lead enterprise to market competition reasonable will further improve the efficiency of manufacturing industry in Wuhan.