Analysis Of Guizhou 's Total Factor Productivity And Economic Growth

After the reform and opening, the GDP in Guizhou province is4.662billion Yuan in1978and685.22billion Yuan in2012. The average annual growth rate is10.02%(in constantprices of1978). How is the quality of economic growth in Guizhou? And which is the mainsource of its economic growth? Is it factor inputs or efficiency improvements? Theseproblems are worth exploring. This article selects the Malmquist index method to calculatethe total factor productivity of nine city states from1978to2012in Guizhou. Results showthat total factor productivity is positive to the growth rate in Guizhou province during theperiod of1978to2012, and its average annual growth is6.3%. Making decomposition oftotal factor productivity change, we get that technological progress and efficiencyimprovement work together to promote the total factor productivity, and the growth of totalfactor productivity is the most which mainly comes from the improvement of technologyprogress. Efficiency improvement needs to be improved; the most main of each state’s totalfactor productivity growth is derived from the improvement of technical progress; efficiencychanges to some extent hindered the total factor productivity growth of Anshun, Tongren.Comparing economic growth rate with total factor productivity growth rate of every cityof Guizhou province, we find that their growths are consistency: if one’s total factorproductivity growth rate is high, its economic growth speed is faster. Total factor productivityis an important factor to promote the development of rapid economic growth. We can use thedifference of total factor productivity growth rate to analyze the differences of regionaleconomic development.We also study the relationship between economic growth and total factor productivitygrowth of Guizhou province. The total factor productivity growth and economic growth havethe same direction. In the short run, the total factor productivity growth rate is the grangercause of economic growth. Doing return between economic growth rate and total factorproductivity growth, we find that the total factor productivity is closely related to economicgrowth, and it is one of the important indicators to promote sustainable economicdevelopment. In addition, we also study the contribution of economic growth in Guizhoubetween the total factor productivity and other elements. We found that the current maindriver of economic growth is the growth of total factor productivity.