Regional Industrial Growth Differences: Based On The Experience Of Dea Analysis

Industry, as the leading force of China's economy, its regional differences hasdirect impact on the regional imbalance of economic development. In this paper,Malmquist TFP Index and Data Envelopment Analysis (DEA) are used to constructeconomic growth accounting model. Changes in labor productivity are decomposed intothree parts which are caused separately by technical efficiency, technological progressand capital deepening. And we use Chinese industrial economy panel data of 1998-2009to analyze China's regional economy differences.This paper summarizes the methods of measuring Total Factor Productivity, andthe ideas and methods in the research of economic disparities in Chinese industry, andanalyzes the status quo of regional differences in China industrial economy. Thendiscusses in three steps the differences of growing of China regional industrial economy:the first step , it uses the DEA based accounting model of economy growth todecompose the labor productivity data of Chinese 31 provinces/cities/region in1998-2009,and studies each part's contribution to the variation of labor productivity indetail; the second step, applying the conclusion in the first step, it uses the method ofCounterfactual Labor Productivity differences to study the trends of Chinese regionalindustry; the third step, based on the current economic situation in China, it empiricallyanalyzes the real factors which contribute to Total Factor Productivity. Finally, itsummarizes the paper and considers the directions of further studies. The conclusionmainly includes four aspects: (1) Technology inefficiency is a common phenomenon inthe course of china's industry development; (2) China's industrial labor productivity hasbeen improved. The technology efficiency improving, technology progress and capitaldeepening have played catalytic roles, in which the technological progress took most; (3)The differences of Industrial growth during provinces were smaller and smaller, whichwas mainly caused by the capital deepening. (4) In order to make a balance in Chineseregional industrial development, industrial technology efficiency should be improved inmulti aspects. Capital deepening and technology improvement need to be prompted inundeveloped regions. Make more investment in education and improve the quality ofhuman labor.