An Study On Total Factor Productivity Of Software Industry In China

Nowadays, the world has entered an era of knowledge-based economy. The electronic information industry has become the basic industry, pillar industry and leading industry of the national economy, and its level of development has become an important symbol for measuring a country's modernization and national strength. As the foundation and soul of the electronic information industry, the software industry has penetrated into all fields of national economy and daily life with its high value-added and high technology, and it is of great significance in promoting national economic development,strengthening national economic security, optimizing industrial structure, increasing export to make profit in foreign currency, and so on.Software industry development began relatively late in China, so the research did not exited until 1990s, and then most of them focused on the status of the development of China's software industry, government policies, and comparative researches on the development strategy in United States, Japan and other software developed countries, however, the study about the total factor productivity about Chinese software industry is very few.Look over the process of Chinese software industry development, today our country's software industry has made big progress in industrial size and structure, however, the orientation for the big size makes us easily ignore the quality of the development of the software industry. As the core of the new economy and the strategic industry, the study of the software industrial total factor productivity is exactly an important issue.This paper studies China's software industrial total factor productivity from the perspective of both static and dynamic. First of all, in order to show the status of our country's software industrial total factor productivity. we compute 29 provincial software industrial technical efficiency efficiency ,scale efficiency and pure technical efficiency with the use of the 2002 to 2006,5 years data of the software industry of 29 provinces and the method of DEA's CCR model and BCC model, and then compare them among 29 provinces and east, central and western regions.Second,in order to depict the change of the software industry, we compute the Malqmuist index and separate it into the change of the technical progress and technical efficiency, with the use of the methods based on the DEA's Malqmuist index , and then compare these changes among 29 provinces and east, central and western regions. We hope this research on China's software industrial total factor productivity can provide a reference for our country's software industrial research, plan, regulation, and so on.