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The Analysis Of Total Factor Productivity Between Japan And China In The Period Of Rapid Economic Growth

Posted on:2013-08-09Degree:MasterType:Thesis
Country:ChinaCandidate:S D SongFull Text:PDF
GTID:2249330371979485Subject:World economy
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American economist Solow proposed the conception of total factorproductivity. To measure total factor productivity and compare the quality ofnational economic development has become an important researchperspective. This article analyzes the period of rapid economic growthbetween China and Japan based on the perspective of total factor productivityin order that we could research in Japan and China’s total factor productivitycontribution to economic growth with the help of econometric methods. Wedefine that the time from1955 to 1973 in Japan and from 1992 to 2010 in Chinaare the period of rapid economic growth.In this paper, we define the Cobb-Douglas production function as Hicksneutral, constant returns to scale and select the output, capital and labor as anindicator. We calculate the total factor productivity and its growth rate in Chinaand Japan in the period of economic growth and analysis of it. During thisperiod, on one hand, total factor productivity in China and Japan are increased,the growth rate of total factor productivity and the growth rate of GDP is almostconsistent, on the other hand, Japan’s total factor productivity is more highthan China’s total factor productivity and Japan’s volatility of total factorproductivity growth rate is less than the volatility of China’ and lately China’sgrowth rate of total factor productivity have overtaken Japan’ in some years.This paper selects the industrial structure, research and development andadministrative costs as the index of structural change, technological progress,and institutional change. With the help of the changing form of the Lucasmodel, we calculate the influencing factors of total factor productivity on thecontribution to economic growth in China and Japan. During this period, industrial structure affects total factor productivity most in China and Japan.Compared with Japan, China’s research and development of total factorproductivity is not only reflected in the contribution but also in the growthmargin. China’s administrative costs have a negative impact on total factorproductivity.Through estimating and microanalysis of total factor productivity and itsmain influencing factors in China and Japan, we conclude that at this stageThe contribution of total factor productivity in China’s economic growth is notobvious, Productivity is not high. The mode of economic growth is theextensive growth. To achieve long-term steady growth, China need to improvethe economic efficiency and the technological level.In order to improve total factor productivity, China should improve themarket economic system and develop science and education and developproducer services as soon as possible and improve the process ofurbanization. What’s more, China needs to change the mode of economicgrowth, from the traditional extensive growth to intensive growth mode, andrun the road of new industrialization, in order that China must get sustainableeconomic development.
Keywords/Search Tags:Total Factor Productivity, Economic growth, the Solow residual
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