Transformation And Upgrading Of Industrial Enterprise In Guangdong Province, Based On The TFP

Since1980, Guangdong Province’s industrial has made great progress. As an important part of the market, enterprise plays a decisive role in the development of economy. However, since the2008financial crisis, Guangdong faced with complex domestic and international environment, and the growth rate slowed down considerably. In addition to the impact of external objective factors, the most important reason for the development of Guangdong’s industrial growth slowdown is that the traditional develop model has been facing a huge challenge. In the past thirty years, Guangdong’s economic miracle was achieved mainly rely on high fixed asset investment and a steady stream of labor inflows. The paper based on recent data of industrial enterprises in Guangdong Province, used Solow Residual method and data envelopment analysis to analyze the TFP of industrial enterprises in Guangdong Province. The paper point out that factor of inputs play a dominated role at the industry economy growth, the contribution rate to it reach68%. On the other hand, scale efficiency and total factor productivity and other aspects of knowledge and experience in industrial enterprises failed to become a major contributor to output growth. Therefore, to promote the transformation and upgrading of industrial enterprises, it is necessary to improve total factor productivity of industrial enterprises urgently. Based on results of empirical analysis, the paper propose a number of suggestion for the transformation and upgrading of industrial enterprises in Guangdong Provinc. Industrial upgrading and transformation is actually the traditional labor-intensive industries transfor to capital and technology-intensive industries, this transformation process is actually a process of TFP growth. Therefore, it’s necessary to establish series of certain laws policy, financing policy, taxation and fiscal policy, SME support plans and other aspects of the policy to improve total factor productivity, and ultimately achieve the transformation and upgrading of industrial enterprises in Guangdong Province.