A Comparision And Analysis Of TFP In The Three Major Coastal Economic Zones

With the rapid development of economy in our country, the Pearl River delta, the Yangtze River delta and the Circum-Bohai economic zone also have been changing greatly. Under the current economy situation, extensive development mode cannot meet the needs of reality. The economy reality is pressing for the fully efficient use with limited resources. Accordingly, based on the joint research of the national social science key subject "the trend of global division of labor market and its influence on China’s economic development on post-crisis era" and the major research project in humanities and social science of Guangdong province education department "the evolution of the global division pattern of labor and the research of new competitive advantage to Guangdong industry", investigated the three major economic zones and obtained series of raw data. Using these raw data and SFA method, this paper studies the total factor productivity of China’s private enterprises in the three leading economic zones.Firstly, This paper analyzes the principle and model of stochastic frontier analysis method. Secondly, using the existing raw data, this paper studies the TFP of enterprises from the three major economic zone. Again, from the point of industry heterogeneity, this paper compares and evaluates the TFP of enterprises from the three major economic zones. Finally, by method of SFA, we come to its economy conclusions and policy implications.Through the empirical analysis we find that, first of all, the technical inefficiency estimates for the three big economic circle zone are quite satisfying. Among them, more than85%of the output of the Circum-Bohai economic zone and the Yangtze River delta is from technical inefficiency, about42%of that for the Pearl River delta. Secondly, the TFP level for the three major economic zones, from high to low are the Circum-Bohai, the Yangtze River, the Pearl River. Finally, because of the existence of industry heterogeneity, the development situations of the three economic zone are different. The machinery industry is in great need of capital and labor. The light industry needs more labor input. But currently the impact of capital for the chemical and material industry’s output is limited.