The Research On Shaanxi Regional Economic Growth Of Total Factor Productivity Change

With economic development, the research on productivity has become a popular branch of economics. In order to better describe the total factor productivity (TFP), the focus on productivity has changed from the partial factor productivity to total factor productivity after World War II. After reviewing the theory of TFP and the relevant literature, this paper estimated the TFP of Shaanxi province between the year 1995 and 2009, based on the latest statistical data and the method of nonparametric DEA-Malmquist index. Meanwhile, the TFP is decomposed into technical efficiency change index and technological progress index. This paper firstly analyzed comparatively the TFP and its decomposed indexes in different times and different regions; Then based on the VAR model, it made a dynamic analysis on the relationship between the economic growth and increase rate of TFP by using the impulse response function; Finally, it analyzed the factors affecting the technical efficiency change index and technology index, and demonstrate their relationship respectively from the quantitative point to explore deeper reasons of both TFP and its decomposition index.Through the researches, the paper draw conclusions as follows: First, by comparing the TFP and its decomposed indexes we found that technical efficiency is the main driving force of economic growth. In contrast, technological progress has restrained the economic growth to some extent. In general, the northern region has the high TFP, followed by the middle region and southern region is low. Second, the growth of TFP has different driving force during different periods. Technical efficiency improvements and technological advances both have undertook the major contribution factor to TFP's growth. Overall, after the implementation of the western development strategy, the TFP doesn't reverse the decline situation, but it has improved. Third, TFP throughout the city are quite different, especially the middle region, the highest and lowest value are located in this region, they are Xi'an and Tongchuan respectively. Fouth, the impulse response between economic growth and TFP growth varies in different areas. The response intensity and direction are also different, but both have significant role in mutual interaction. Fifth, the factors which affecting technical efficiency index and technological progress are distinct, and the impact of long-term and short-term direction is not exactly the same.Through the research, it has great practical significance to assess the economic growth of Shaanxi province correctly, to improve the regional TFP, to coordinate the development of regional, to keep the sustainable and stable economic growth.