Research On Total Factor Productivity In Industry Transformation And Upgrading

Industry is the basic of national economy, so a nation’s comprehensive strength and modernization is decided by its development level. Since the Reform and Opening, with the rapid development of China economy the industry developed quickly too, however,there is a lot of questions in the process of the development,such as high input, low output and high energy consumption and so on.These questions will hinder the economic growth. Industry needs transformation and upgrading,enhancing the total factor productivity is the inherent requirement of industry. Therefore, the study on changing law and influence of industrial total factor productivity has a significance to help us understanding and promoting the industrial development in the future.Based on 2003-2013 statistical data of China industrial categories, with using F?re-primont index method,which is based on DEA, this paper calculated industry total factor productivity of 33 industries, and decomposed TFP into total factor productivity efficiency, technical efficiency,scale efficiency,the rest of the mixing efficiency.And I made analysis for the results.Combining the TFP with the advanced structural coefficient, I studied whether industrial changing and upgrading or not.The result showed that, the total factor productivity was mainly driving by technological progress,and China’s industry hadn’t realize the real transformation and upgrading.The more advanced industries have a lower level on total factor productivity.Finally I analysed the factors that affecting total factor productivity of 31 regions of our country with using panel quantile regression method.The result shows that the quality of human resources,research and development investment and the level of opening played a great role in promoting the total factor productivity. This paper puts corresponding policy recommendations forward the total factor productivity: greatly promoting technological progress; improving the technological content of industry growth; optimizing the structure of enterprise organization; playing a scale effect; improving the all quality of the workers constantly;increasing the opening to the outside world;increasing investment in scientific research;expanding the scale of foreign trade; introducing advanced technology.