Road Construction Outputs And Their Comparative Study Of Total Factor Productivity

In This paper, the economic basis of factor investment and factor productivity is firstly discussed, and relationships between investment, total factor productivity (TFP) and output growth are analyzed. On this basis, according to the history and the applicability of our country's highway development, the author discusses the relationship of investment and output of highway construction and their relationship with total factor productivity (TFP). Then, the frame of a research method which compares highway construction output and total factor productivity (TFP) was presented. On the basis of this frame, a computing method of highway construction output effectiveness is conducted, and the condition this method is used is discussed. And a computing method of total factor productivity is also studied. The author designs a algorithm of the cost function of total factor productivity —Advanced Divisia index. Last, an example of how to compute the highway construction output effectiveness and total factor productivity is given, in this way, the maneuverability and the reliability of the method are tested.