Research On Beijing's Manufacturing TFP Under The Control Of Environmental Regulation

With economic development, people focus of the study is not only the issue of economic growth, but they will be given more attention to the economic impact of environmental problems. This paper applies Malmquist-Luenberger index method to measure Beijing's Manufacturing TFP growth and its components in a sample of 26 Manufacturing branches panel data over the period 1995 to 2007 while accounting for environmental issues. First, we estimate and compare two type productivity indices according to two scenarios, from no environmental regulation to have environmental regulation. Secondly, we examine the relationship between Beijing's manufacturing total factor productivity and technological progress. The major conclusions are as follows:with don't consider environmental regulation, Beijing's modern manufacturing total factor productivity was down; with considering environmental regulation, Beijing's modern manufacturing total factor productivity is rising, and technical progress is the main source. And also, we found that had the largest contribution to Beijing's manufacturing TFP growth in the four sectors of communications equipment manufacturing industry, ferrous metal processing industry, transport equipment manufacturing industry and machinery industry.The remainder of this study is organized follows. Section 1 is the introduction. Section 2 described Beijing's manufacturing status, for giving Beijing's manufacturing a comprehensive understanding. Section 3 is the basic theory of TFP and its calculation method. Section 4 is Empirical Analysis, focused on analysis under the regulation of environmental of Beijing's manufacturing TFP, and how caused the TFP change. Section 5 summarizes the paper, drawing the study conclusions and policy recommendations, and put forward the research gaps and future research prospects.