Total Factor Productivity Analysis Of China's Internet Industry

The importance of Internet development is tightly linked to technology in general,as Internet is also a catalyst for other secters to grow as part of sp-called General Purpose Technology(GPT).Currently very few scholars research on the Internet industry productivity empirically.Especially the research on the internet companies which are list on is the lack of industry analysis.This paper analyzes the impact of the Internet industry on the national economy,based on the sample data production efficiency of the Internet industry was calculated on the market,investigate the source of its current development driving force.This paper measures total factor productivity with the DEA-Malmquist index non-parametric method based on panel data of 136 Internet Company's in A-share Stock Market over the period 2003-2013 and 45 Internet Company's in US Stock Market for the period 2011-2014 in China.Many results had found in this empirical study as below.(1)The total factor productivity is in an increasing trend,but there are differences in different years between the 136 Sample Internet companies during 2003-2013,while at the same time showing a negative growth of total factor productivity;(2)Technological progress is the main driving force of TFP growth.The growth of Internet companies is over dependent on the resource input nowadays,the efficiency of rational using with its technology and resources need to be further improved;(3)The TFP growth change of 45 Chinese company in US Stock Market during 2011-2014 is negative,while scale efficiency is the only positive factor in TFP growth.This shows that Chinese Internet enterprises in US has mostly the characteristics of "growing up",they need to maintain a stable rate of expansion at the same time raise capital and output efficiency technologies;(4)The study found that both total factor productivity measurement results vary greatly through comparing A shares and US stocks of listed companies.TFP growth and progress of technology growth in US stocks is lower than A shares,allocative efficiency is relatively lower than the performance of A shares.In the end,concludes with recommendations from the macro and micro level,how the Internet through innovation-driven China's sustained economic growth,and how to face up to the reform of the relevant laws and regulations of China's A share Internet sector.