Study On Total Factor Productivity Of Pan-Pearl River Delta And Its Influence Factors

Regional scientific and technological cooperation is not only helpful for promoting the creative ability of Pan-Pearl River Delta, but also good for industry transfer and integrative competitive capability of the region. This paper studies on the relationship among TFP and R&D input, technology import, education input and so on, which can offer important references for policy-making on the design and choices of innovative mechanism of regional scientific and technological cooperation in order to find an efficient way to improve the whole technological level in the region. Since the time of opening and reform, the economy in Pan-Pearl River Delta has increased enormously. However, some issues are merging in many aspects such as low incomes per capita and extensive pattern of economic growth. Based on the comparisons of the current situation of scientific and technological development among Pan-Pearl River Delta, Yangtze River Delta and Bohai area, it's so easy for us to find that the expenditure on R&D in Pan-Pearl River Delta is much lower than those of the other two areas as well as the average level of the whole country. This paper is based on panel data of nine provinces in this area from Year 1995 to 2008 and C-D Production Function, with which we can calculate Total Factor Productivity. What is more, this paper chooses several factors of great influence on Pan-Pearl River Delta's scientific and technological progress to compute the specific influence of every factor on TFP with the panel data of nine provinces in this area from Year 2000 to 2008. Results show that graduates'number of college and university has the greatest positive influence on the scientific and technological progress, followed by the financial expenditure on education and then the expenditure on R&D, while the number of authorization for invention patent has slightly negative influence on TFP; to our surprise, contract sum on technology import per year and the number of technical personnel have little influence on TFP. Finally,the paper provides some professional advices on how to improve the TFP in this area.