Study On The Change Of Total Factor Productivity And Its Affect Factors In China's Manufacturing Industry

The manufacturing sector is a foundation industry of the national economy.The level of its development is the measurement of a nation's comprehensive strength and the main indicator of the degree of modernization.Since reform and opening up, China's manufacturing industry is moving very quickly,but the development process is along with the high input,low output,high energy consumption and low efficiency problem.Improving the manufacturing sector's total factor productivity and enhancing the sustainability of economic growth are the inherent requirements of the development of the manufacturing industry.Therefore,researching the change of the manufacturing sector's total factor productivity and its influence factors has an important practical significance to our understanding of the development of China's manufacturing industry and the promoting of the future development of China's manufacturing industry.Innovation of this article is that it discusses the change of TFP from different perspectives,such as manufacturing sub-sectors,manufacturing sectors classified according to broad categories and manufacturing sectors classified in accordance with technical standards.Using DEA-based Malmquist index approach,this article has measured the change of China manufacturing sector's total factor productivity,technical efficiency changes and technological progress.The results show that during the 1995 to 2007 period,China manufacturing sector's total factor productivity has been greatly improved in all sectors.The main reason of this is that the technological advances which means the ability to innovate is improved,but the technical efficiency of various sectors is generally not high,which has affected their overall competitiveness. High-tech manufacturing industry has the highest rate of technological progress, making its total factor productivity growth most rapidly.Resource processing industry's total factor productivity and technological progress rate are in high-growth status over the past 13 years,but the level of its technical efficiency is no more than other manufacturing industries,which means it has no competitive advantage. Mechanical and electronic manufacturing has low rate of technological progress and its total factor productivity is lower than the resource processing industry.According to the regression we find that:domestic shareholding companies,joint-ventures and subsidiaries of foreign manufacturing companies are more efficient than state-owned firms.The improvement of human resources and continuing opening up have played a significant positive effect on China manufacturing sector's total factor productivity.