China Manufacturing Growth Accounting And Convergence

After China’s reform and opening up, the rapid economic growth, economicgrowth created one more "China miracle". Despite of the2008global financial crisis,China’s GDP growth rate remained at8%above. As a developing country and a"world factory", the development of the manufacturing industry of China isparticularly important for economic growth to realize industrialization, is the base ofthe impulsion of modernization, is the mainstay of the national power. In theindustrialization process from a lower level to a higher intermediate stage, it’sparticularly vital to analyze each factor influencing the development of China’smanufacturing industry, to find out the gap between manufacturing industries, and toreason China’s rapid economic growth to for realizing industrialization completely,for the certain directive significance in China’s future development.The papers firstly summarizes the related theory of economic growth and China’smanufacturing industry, the measure method of total factor productivity to analyze thecurrent situation of the development of China’s manufacturing industry. Then,combined with the nonparametric method and parametric method, an economicgrowth accounting model is constructed. In this model, the source of economicgrowth can be divided into total factor productivity contribution and input factors twoparts, and total factor productivity is decomposed into technical efficiency change andtechnological progress, and the contribution of input factors arising from four partslabor contribution, capital contribution, energy contribution and other contributions,using the nonparametric method (Malmquist total factor productivity index and dataenvelopment analysis). With China’s manufacturing industry panel data in2000-2011,the empirical analysis to our country manufacturing economy growth accounting iscarried out. Finally, the papers analyzes the low technology industry, secondaryindustry and high-tech industry with the variation coefficient method, but alsocounterfactual analysis is used to calculate the coefficient of variation of thecounterfactual gross industrial production, and to analyze the effect of factors on theconvergence of the technology industry.The main conclusions of the papers are as follows:(1) the technical inefficiencyis widespread in manufacturing industry in our country.(2) China’s manufacturingexperiences rapid economic growth, with great contribution from technical progressand capital investment.(3) part of industry’s labor input and energy input hindered the economic growth for too much of labor input and energy waste.(4) labor inputpromoted the convergence between the low technology industry; All factors increasethe gap of economic growth between secondary technical industry; Technical progress,capital, energy, other factors promote the convergence of economic growth in thehigh-tech industry (5) to accelerate the fast development of manufacturing industry,improving the level of technical efficiency, increasing investment in science andtechnology and investing the human capital deserves much more attention.