Study On Total Factor Productivity Of Regional Economic Growth In Shaanxi Province

Economic growth has long been a main research project in the world. In 1957, TFP --a new concept first presented by Solow became one of the major theories in the area. Problems like regional、extensive and low TFP contribution have long affected the economic development of Shaanxi Province. How to solve the problems? By putting more investment on resources development, or by improving the productivity, or both? Considering the economic development efficiency of Shaanxi Province, Which components of economic growth factor deserve further attention? The author tries to analyze these questions in this paper.In the paper, the author has made a brief review of the TFP theory and related materials in the first place, then use the DEA-Malmquist index method and the latest data to estimate the TFP change rate and its components value of 10 cities of Shaanxi Province in the period of 1990-2013. The author has analyzed the overall and regional differences in time sequence and components of TFP. To analyze and evaluate the short-term relationship between economic growth and TFP in different cities of Shaanxi Province objectively, the author used the error correction model and the Granger causality test model and finally came to the conclusions that compared with technical efficiency, technical progress would improve the TFP of Shaanxi Province more efficiently. Most time the change value purely caused by technical efficiency is less than one, this phenomenon affect the TFP improvement negatively. And from the regional perspective, economic growth and TFP are positively related. Based on that, the author made the final suggestion.