Estimation Of TFP And Analysis Of Influence Factors Of Chnia’s Electronics Industry

The electronics industry is the core of high-tech industry, and a vital component of theindustrial sector. The electronics industry with high technological content and added value,reflects the level of economic development and productivity of a country, and is veryimportant to transformation and upgrading of the economic. With the development ofeconomic globalization and information technology, many countries attach great importanceto the stimulating effect of the high-tech industries, which provides an important opportunityfor the development of the electronics industry. With the implementation of reform andopening up, the electronics industry of China risen. Although it was a late start compared toabroad, it confirmed a sustained and rapid development. With the development of theinformation age and the knowledge-based economy, the electronics industry of China grownup, and became first pillars and basic industry. The electronics industry is a core industry ofthe high-tech industry, and it is characterized by orientation, permeability and radiation, whichbecomes the advantage of driving the development of the related emerging industries. Thedevelopment of the electronics industry plays a vital role in the upgrade and transformation ofChina’s economy. Productivity analysis is an important tool to explore the sources ofeconomic growth, and the main method to assess the quality of economic growth. Theresearch of TFP for the electronics industry provides a channel to explore the development ofthe electronics industry. Thus, the study of TFP has an important meaning to the developmentof China’s electronics industry, which is the significance of this study.From the research of TFP, this study starts from the theories and contents, and analyzesthe factors, which affect TFP. This study derives the mainly influence factors including thespillover effects of FDI, R&D activities, human capital, government investment in scienceand technology, institutional change and economies of scale, and so on. Through analyzingthe history and the current development of the electronics industry, this paper comes to thegeneral characteristics and the industry characteristics of the electronics industry. Using themethod of Solow Residual Method and Data Envelopment Analysis, this paper estimates theTFPs of the electronics industry and the high-tech industry, and then compares the resultsfrom two methods. The conclusion is that the results between the two estimates have littledifferences, and the trends are basically same. The TFP of electronics industry is more stable.The high-tech industry has more fluctuations before2003, but after is relatively stable. Thetwo algorithms to estimate the TFP growth rates of the electronics industry have littledifference, and the values and the distributions of each extreme value are consistent. The TFPgrowth rates of the high-tech industry are slightly different in the corresponding years, and thechanges and trends are basically the same. Using Gray Relational Analysis, this paper obtainsthe main factors, namely R&D intensity, FDI intensity and of human capital intensity.The R&D activities of China’s electronic industry are more active, R&D investmentpromotes the development of the electronics industry, and a reasonable proportion of R&Dinputs and outputs will improve the efficiency of R&D. The electronics industry possessesmore FDI, foreign investment entering a country can bring the opportunity to get foreign technology, products, services and other knowledge with different forms. So the extent offoreign investment into the electronics industry could make higher foreign direct spillovereffects. Human capital is critical to the development of the electronics industry. Humancapital can be conducive to improve the learning ability and the innovation ability ofenterprises, and affects the technical level of enterprises. Human capital is essential for thedevelopment of the electronics industry.Based on the empirical analysis and reasons analysis, this study obtains the problems ofChina’s electronics industry and puts forward relevant suggestions. Increase R&D investmentof enterprises, determine a reasonable scale and structure of R&D investment, and improvethe conversion capabilities of R&D results. Rationally utilize FDI, improve the accessstandards to FDI, and attract high-quality foreign investment. Focus on accumulation humancapital, create favorable environment. Increase the government investment in education,encourage the private capital to invest in education, and improve the education system.