An Empirical Study On Technical Efficiency, Technical Progress And Productivity Growth In China’s Industrious Sector

Since1978reform and opening up. China’s economy has maintained an high-speed average annual growth rate of9.8%. China’s economic growth is impressive, but also aroused questions about sustainability of China’s economic growth mode. Such doubts deny the existence of enhance in Chinese economic efficiency and improvement of the quality of economy growth. There is no denying that China’s rapid economic growth is largely relying on high investment, high consumption, high emission, low efficiency of extensive growth, which will inevitably lead to deep-seated contradictions and problems which restrict economic long-term development. Therefore, the17th National Congress propose that "transforming the mode of economic development and achieving good and steady economic growth", put the improvement of the quality of economy growth in a more important position. Total factor productivity is not only an important indicator to reflect the economic efficiency, but also the most important indictors to reflect the quality of economy growth. From the perspective of economic growth, the enhancement of technical efficiency can make existing economic resources be fully utilized and reduce the losses caused by low efficiency, while the enhancement of technological progress can make the continuous and stable economic growth possible. The industry has been the main force driving China’s economic growth, the industrial contribution rate to the economic growth has exceeded49%by the end of2010. At present, China is still in the middle stage of industrialization, the transformation and upgrading of the industrial structure is an important part of the transformation of economic development mode. The enhancement of technical efficiency and the acceleration of technological progress, thereby, the growth of total factor productivity is a necessary condition for the transformation and upgrading of industrial structure. Thus, studying China’s industrial technical efficiency, technological progress and total factor productivity is of great significance to the sustained, stable and health growth of China’s industry. Based on factor-intensive, the paper divided industrial sectors in China into labor-intensive, capital-intensive and technological-intensive industries. Using the stochastic frontier model to measure the technical efficiency of the three types of industrial industry and analysis the exogenous factors of technical efficiency; estimating the growth rate of total factor productivity of three types of industries as well as the entire industry, then decompose it to frontier technological progress, improvement of the technical efficiency, economics of scale and factor allocation efficiency:Then analysis the exogenous factors of frontier technological progress by panel data model.Drawing the following conclusions:1. Labor-intensive, capital-intensive and technological-intensive industries’ technical efficiency is sequentially smaller. and the technical efficiency of three types of industry as well as the whole industry fluctuated over time.2. Intra-industry R&D and state-owned property rights have the same impaction to technical efficiency of three types of industry, Intra-industry R&D promoting the technical efficiency of three types of industry, the higher state-owned property rights have, the lower technical efficiency. Capital intensity of the industry, the degree of foreign participation, and the dependence degree of import and export as well as industry scale has different effects on different industry sectors.3. Form the industrial level point of view, the annual growth rate of total factor productivity of capital-intensive industries is the lowest, while technological-intensive industries is the highest. The annual growth rate of total factor productivity of the whole industry is6.49%, the growth rate of total factor productivity decreased since1993, and then begins to rise in1995, and reached a peak in2003, then subsequently reduce in fluctuations until2008, and then rise in fluctuations. Throughout the study period, frontier technological progress is the main driving force of the total factor productivity growth of the industry..4. The dependence degree of export has the same positive impaction to technological progress of three types of industry. Intra-industry R&D. state-owned property rights, capital intensity, the degree of foreign participation, and the dependence degree of import as well as industry scale has different effects on different industrial sectors. The paper can concluded that the technological progress of the labor-intensive industries is lower, but higher technical efficiency; the technological progress of the capital-intensive and technological-intensive industries is higher, but technical efficiency is lower. Therefore, in order to further improve the technical efficiency, frontier technological progress and total factor productivity of China’s industries, so as to promote the optimization and upgrading of industrial structure, making industry policies should consider the characteristics of the different industries, specific analysis the different industries and treat them differently.