Hunan Manufacturing Total Factor Productivity Change In Empirical Research

In the course of modernization, the position of manufacturing industry is irreplaceable. In Hunan province, manufacturing industry plays a decisive role in the industry, it is the most important pillar and the engine promoting the high-speed advancement of national economy. According to the analysis of experts, to Hunan province, manufacturing industry is the key to the realization of industrialization. Therefore, the research on the TFP growth of manufacturing industry of Hunan has important realistic meaning. First, it can help us to understand the development state of Hunan manufacturing industry; Second, it's result can promote the development of Hunan manufacturing industry in the future.With Malmquist index method, which based-on distance functions, the paper measured the growth of TFP, the change technical efficiency, and the technological progress of Hunan's manufacturing industry. My study shows: During 93-02, the technical efficiency levels are generally low, this is unanimous with the research conclusion of forefathers'. In the first six years of this period, the levels of technical efficiency, technology and TFP increase in several years and decrease in the others. But since 1999, they have been in a state of increasing continuously, and the rate of increase rises year by year. In addition, my study shows that the development of manufacturing industry of Hunan during these years, not only depends on the investment in new technology (technological progress), but also stems from the improvement of technical efficiency. This is different from the research conclusion of forefathers', the conclusion indicates that the development of manufacturing industry of Hunan is in a good state in recent years.The regressive analysis of Malmquist index, the change of technical efficiency and technological progress shows that the low management level restricts TFP growth of manufacturing industry of Hunan. Meanwhile, the lowness of the productivity level of state-owned and state holding enterprises, and the poor performance of small-sized enterprise hindered the growth of TFP of Hunan manufacturing industry. Finally,through the synthesis of the analysis result above mentioned, the paper provides the corresponding policy recommendations.