Economic Growth In The Factor Analysis Method

Economic growth means gaining more output with more input or in a more effective way. So the growth of economic output can be directly summed up in two parts: First, the growth of input, second, the growth of output per unit input, namely the growth of productivity. The analysis of economic growth factor is in order to seek the effective ways of realizing economic growth. And there are too many analytical methods available. But the core of these methods is the measure of productivity change. This paper is to mainly discuss the methods of measurement of productivity change. These methods can be classified into parametric method and non-parametric method on the whole. The parametric method needs to obtain information of production function with econometric technology. And the non-parametric method does not need to obtain information of the production function. This paper will do further research to the non-parametric method through using index method on the basis of previous study.