A Comparative Study Of Chinese Morden Service Industry Calculation Method Of TFP

Since the reform and opening up,China's service industry has been steady and rapid development.However,in the early stages of development,we are often more concerned about the amount of economic growth.But the analysis on the development of quality is insufficient.Since 2012,our country set the overall GDP growth target at 7.5%.This requires us to pay more attention to the quality of economic growth.Economic structures,especially the adjustment of industrial structure is more important than the economic growth's status.In this background,the influence of technical progress and technical efficiency in the economy becomes more important.As we all know,total factor productivity is an important indicator of economic growth in technical efficiency and technological progress.The study about Calculation Method of TFP of service industries has extensive and realistic significance.Firstly,the theory of TFP of service industry is summarized.Then,the paper summarized the methods currently on the economics of some of the more mainstream estimates TFP services,and theoretically compared the advantages and disadvantages of each method.At last,we displayed it in the form of a table.Currently,the mainly calculation methods of TFP of service industries contain: Solow residual method;stochastic frontier production function analysis;DEA;Potential output method and implicit variable method.To enhance the persuasive of this paper,we selected some statistical data of China from 2001 to 2013,such as the GDP of service industry,number of employees.Basing the fixed asset investment,we also estimated the annual capital stock of service industry.Using the five methods above,we measured the TFP of service industry respectively.Next,this paper theoretically demonstrated scientific methods mentioned above.It mainly demonstrated the scientific of Solow residual method and potential output method.Choosing a different base year,the resulting in estimated results will be different.Therefore,when using this measurement method,you need to select a number of different base years,and to compare the results of different.This paper also analyzes the factor of total factor productivity in the service sector which caused the economic efficiency.It mainly includes the followings:(1)Institutional reforms changes;(2)technological progress;(3)increase of human capital.This paper also analyzes the emerging economies as a service industry total factor productivity measures particularity body.It is mainly reflected in two aspects:(1)A considerable part of the investment for infrastructure;(2)Technological advances mainly by the introduction of technology and the purchase of equipment from developed countries.Finally,we can draw the conclusions that potential output method and Solow residual method have more relatively large fluctuations,while DEA,implicit variable method and SFA's results are relatively flat.Moreover,the results are close.We believe that the SFA and DEA methods have higher accuracy.But Solow residual method's result has large error.On the basis of the mainstream methods of measurement services TFP comparative analysis,this paper describes the research and practical significance of the continuous improvement of calculation methods.So,when measuring the TFP's growth rate of China this period,we'd better choose DEA,SFA or implicit variable methods.