The Analysis Of Total Factor Productivity Of Shandong Province-Based On Environmental Constraints

The analysis of Total Factor Productivity (Total Factor Productivity, TFP)is an important tool to explore economic growth and security, it can also measure the contributions that factor inputs make to economic growth, meanwhile it is often regarded as the indicator of economic growth pattern of an economy and whether the economy can achieve sustainable and scientific development, therefore it is often considered as an indicator of technological progress. Many scholars have been always making deep and extensive research on this indicator, who design many measurements about the growth of TFP. Which mainly include the parameter method based on the production function and the nonparametric method based on data envelopment analysis, the latter has been widely used in various fields in recent years as it can fit environmental regulation into the assessment of total factor productivity.This article based on the predecessor research, examines the total factor productivity and industrial total factor productivity of 17 prefecture-level cities in Shandong Province by provincial panel data, employing the Malmquist-Luenberger productivity index based on DEA(Data Envelopment Analysis) method, and further decomposes the TFP into efficiency change and technological progress, basis on which, we can find out the innovators of the regional economic development and industrial development. The research results reveal that between 2004 and 2010, the quality of economic growth of Shandong Province is worrying, and the average TFP grows slow or even decline, the way of economic development is still extensive growth; while considering the environmental regulation, the average total factor productivity has increased, technology advances while efficiency is also improved, environmental regulation can effectively promote technological progress and efficiency, thus improve the growth of total factor productivity, which reflects larger differences in different regions.This conclusion has important reference significance for the cites of Shandong Province to allocate resources and develop the policies of economic growth, providing important policy basis for the development of sustainable development strategy.