An Empirical Analysis Of The Impact Of Wage On Total Factor Productivity

With the reform and opening policy in china,we have made prominent achievements,fulfilling medium-high growth in forty years.At the beginning,we depended on cheap resourses and labor productivity,sacrificeing environment and longer benefits to get recent benefits.With the deepen development of economy society,contradictions and problems appeared on.After 2000,especially financial crisis in2008,china faces big challenges whilst it is also an opportunity for china to develop.Comprehensively accelerate to upgrading of an industial structure.from labor intensive industry to capital and technology intensive industry,all this will inject new vitality.The article prominently summarize theories about salary and total factor productivity.from the analysis of 1990-2014 average salary data,compared with the east,cental and west,we get a preliminary understanding,and then measure the total factor productivity,we find that the wage growth rate is consistent with total factor productivity rate,then we used var model to analysis the relationship between two factors.It is found that the contribution rate of wage growth to total factor growth rate will stabilize about 32% with the increase of the number of periods.The article also measured total factor productivity rate from province panel data.Finding that TFP in eastern province is fluctuateing than wedtern.The article futher analysis consumption,export and investmentfators to TFP.The result tells that with the rise of these factors,the TFP also rises,salary through investment will have negative effects on TFP.In conclusion,under the current ecomomic background of china,from all aspects of the economy to improve the quality of China's economic development and total factor productivity.To create a good environment for consumption;actively foster new consumption hot spots,establish a good social security system;optimize the export structure,accelerate the transformation and upgrading of enterprises;optimize the investment structure,strictly limit the high pollution and high energy consuming industries.