Study On The Total Factor Productivity Of China Paper And Paper Product Industry

The development of paper and paper product industry is closely related to the constructionof the national economy, especially the process of modern economic development. The researchof papermaking industry is getting remarkable, especially the total factor productivity (TFP)growth. The TFP growth is the important sign of efficiency of management and technologicalprogress, which has already become the core of the industrial economic growth quality. As animportant industry of production performance indicators, it can not only directly reflect theeconomic condition of the industry, also can be used as important basis for factors analysis. Butfacing scarce raw materials, shortage of capital and lacking of technology, how is the TFP ofpapermaking industry in each China region? What the differences between regions? How toseize the opportunity to adjust industrial structure and product structure? How to improve theefficiency of resources utilization? All these questions will be the core content of the total factorproductivity in China paper and paper product industry.Based on the previous theories of economic growth, technical efficiency and total factorproductivity reviewed and summarized, this paper intends to analyze the TFP trends ofmanufacture of paper and paper products in China. DEA-Malmquist model is carried out inorder to assess the industry TFP and its decomposition characteristics from2000to2012. Fromthe angle of empirical research, DEA-Malmquist model is first to estimate the TFP growthvariation of three big area and29provinces in China. In order to explore the deep reason ofTFP growth variation, the efficiency measurement is divided into three parts: the pure technicalefficiency(PTE), scale efficiency(SEC) and technological progress(TE). Secondly from thegeographical distribution of papermaking industry, Guangdong, Jiangsu, Zhejiang andShandong are taken to be representatives to examines the differences in different areas. At thesame time, in an output-oriented model the provinces will gain efficiency maintaining theinputs. Then the single factor regression analysis is taken to measure the influence factor to theTFP variation of the manufacture of paper and paper products. Five factors are carried out toexplore the cause of the TFP variation, including energy consumption, foreign businessinvestment, degree of opening-up policy, the scientific research investment and thecharacteristic of papermaking enterprises.In a word, conclusions could be divided into two different aspects. From the average, theTFP of manufacture of paper and paper products in China presents modest growing. From thepoint of space, the wave amplitude of TFP change value in three regions is relatively unstable.It shows significant differences in the economic development, technical level and productionfactors among the three regions, but overall production efficiency change in estimates has thesimilarity. From the angle of the influence factors, the energy consumption promotes the growthof TFP, and also the foreign business investment, the level of opening-up policy and the scientific research investment. The characteristic of papermaking enterprises has a negativeeffect on the TFP change. Finally, this article puts forward policy suggestions based on theanalysis of the TFP changes in the papermaking industry.