Decomposition Analysis Of The Change Of Interprovincial TFP Based On Malmquist Index Method

China's economy has maintained a high growth rate in recent twenty years. But questions of China's growth route hasn't ceased meanwhile. After East Asia's financial crisis, critics of East Asia's growth route has attracted lots of arguments from domestic and foreign scholars. Some argued that China's economic growth is high input and low efficiency while some other researches claimed that to a great extent China's economic growth relied on the growth of Total Factor Productivity (TFP) .Based on panel data from 28 provinces in the 1990-2004 period, this paper uses Malmquist index method which is based on Data Envelopment Analysis(DEA) to decompose the TFP growth rate and investigate its character in respect of technical efficiency and technical change. The output variable uses Gross Domestic Product (GDP) and the input variables use capital inventory, number of employees, and human capital inventory. The result shows that TFP growth has attributed a lot to China's economic growth. And the growth of TFP was mostly due to technical change while the technical efficiency was inclined to drop.The first part gives an explanation of the title of this paper and looks back on relative researches. The second part introduces the development of economic growth theory and TFP researches. The third part introduces some basic models and concepts of DEA and Malmquist index method. The fourth part is about data selection and investigation. The fifth part is the analysis of the result of model computation. The last part is the summary.