The Associated Calculation Of The MFP In Industry Perspective

The Multi-Factor Productivity (MFP)，which is an important part of modern economic growth theory, is an important tool for analyzing the source of economic growth. Since J. Tinbergen and R. Solow’s pioneering research on MFP, many domestic and foreign scholars have conducted in-depth research with numerous calculation theories and methods of the MFP proposed. However, no method is ideal. And so far, how to scientifically measure the MFP is still problematic in China. Based on China’s actual situation, the purpose of this paper is to study the method that is able to truly reflect the status of regional productivity, and analyze the MFP of the regions and industry from industry-level to total-level.Generally speaking, this paper focus on developing new viewpoints, introducing new methods and materials and conducting new exploration from new perspective. First of all, the essay gives implications, background, and relevant researches for productivity. Most domestic scholars measured the productivity of contribution rate or productivity of speed for single-industry or single-region indirectly using the residual method. Due to the arbitrary selection of the calculation methods, the results are not comparable.Secondly, on the basis of the concepts of productivity, this paper analyzes the differences and relations of MFP and technological progress. Meanwhile, the essay introduces the main methods to measure productivity, and analyzes their advantages and disadvantages. After that, this paper makes a detailed description for Tornqvist MFP index that is used to measure MFP, and analyzes the advantages of this method. Also, the paper introduces the choice of variables for factor inputs that involved in the measuring process. In fact, selecting factor inputs is a complex process. Standards or criteria need to be unified for the selection. However, the domestic researches don’t elaborate in this regard.Thirdly, the essay puts forward the criteria for the choice of factor inputs. Based on the Tornqvist MFP index, using the first and the second national economic census, the regional MFP and industrial MFP are calculated. At first we calculated the MFP of95divisions in economy, generated the MFP of20sections by the corresponding divisions, then the industrial MFP by the corresponding sections can be generated, and finally we generated the total MFP.Finally, according to the results of calculations, the rationality and advantage that using the Tornqvist MFP index measures the MFP is verified. We sort and analyze the MFP of the2006-2011regional industries, divisions and sections, and through exploring regional industry MFP contribution to total MFP of middle area, we explain why the MFP is high or low in this region and try to point out the direction for improving the MFP in this area.