| China’s industry is facing stringent environmental constraints, it needs to be upgraded. We need to find out the inefficient source of industrial processes, analysing contribution of input and output to total factor productivity(TFP), then improve shortcomings.Using the RAM Network DEA model and Luenberger productivity Index, this paper accounted the production efficiency and TFP, decompose them and analysis relevant factors. We get the following conclusions: the average of overall efficiency of China’s regional industrial has increased during the ten years, the growth rate of overall industrial efficiency during the second five years is bigger than it during the first five years. The eastern coastal areas achieved the highest level of overall efficiency while the middle reaches of the Yellow River in contrast. Comparing the production efficiency and environmental management efficiency, we find that the former is bigger than the latter in all areas. Because of the investment has not been effective utilization and the excessive emissions, the overall industrial efficiency level been pulled down. China’s industrial TFP during the observation period has experienced rapid growth, decline and restore growth phase, technological change is the main cause of industrial TFP change. Regional economic development, the structure of input factors and FDI are the factors which will affect industrial efficiency, only regional economic development and capital-labor ratio are the significant impacts to Industrial TFP.We can make full use of pollution control investment, encourage independent innovation and promote mutual integration of industrialization and information technology to improve industrial efficiency and TFP. |
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