Research On The Growth Factors Of Total Factor Productivity In China's Real Estate Industry

Since 2012,China has successively put forward a series of development reform ideas such as “Innovation Driving Force Development” ?“New Normal Economy” and “Supply-Side Reform”,effectively addressing the contradiction between speed and quality in China's economic development,and promoting efficient development of China's economy.The real estate industry,with its enormous role in social and economic development,has become an important component of China's national economy.Its development has a major impact on China's economic development.However,as the real estate industry is a capital-intensive and labor-intensive industry,the scarcity of resources poses a great challenge to its sustainable development.Therefore,how to improve the production efficiency of the real estate industry has become a hot topic in the society.Existing studies have consistently agreed that the level of total factor productivity in China's real estate industry is relatively low,but the selection of input indicators in the study is not standardized and the analysis of the causes of slower growth of total factor productivity is less.With regard to these,first,based on the review of the theory of economic growth and the theory of total factor productivity,the total factor productivity of the real estate industry was token as the research object of the paper,and the stochastic frontier analysis(SFA)was used to evaluate the growth of China's real estate industry TFP and it's composition from 1999 to 2016,then the provinces divided into three regions by the real estate industry's growth rate of total factor productivity and analyzes the characteristics of their changes from the whole and regions.Then,a panel data model is used to study the affecting factors of the whole and regions real estate TFP growth rate and its composition.Last,the policy recommendations to improve the total factor productivity of the real estate industry are proposed.The results of the study show that:(1)The real estate industry in China has greater volatility in total factor productivity growth.Its growth is mainly driven by technological efficiency,while technological progress,scale efficiency,and allocation efficiency have hindered its growth;the gap between the growth rate of total factor productivity of the real estate industry in the three regions has increased first and then decreased,and the regional growth characteristics of the three regions are quite different;(2)The growth rate of total factor productivity in real estate is affected by the positive way from the Real estate industry resource level,the stock of labor capital,and the level of urbanization,but the negative way from the degree of government intervention and economic development;(3)The Real estate industry resource level?the capital stock per laber and urbanization level have contributed positive effect to the improving of the real estate industry's total factor productivity in all regions,and the degree of government intervention and economic development have had a negative impact on them.The differences are mainly reflected in the degree of influence of each factor on TFP and degree of influence and way of influence on the each component.According to the research results,this paper puts forward the corresponding countermeasures and suggestions as follows:(1)Strengthen scientific and technological input,and introduce advanced technologies to promote the transformation of real estate scientific and technological achievements into productive forces,accelerate mergers and reorganizations,and increase the adequacy of the flow of input factors,so as to increase the total factor productivity of the real estate industry;(2)Differentiate each region strategies according to local development characteristics.Based on local conditions,effectively increases the total factor productivity of the regional real estate industry.