Estimation Of China's Total Factor Productivity And Research On Its Influencing Factors

In the long run,the focus of economic growth is to increase total factor productivity.Studying the estimation and influencing factors of TFP in China will help to clarify the main direction of China’s economic growth.Based on the Ramsay model,this paper expounds the theoretical relationship between economic growth and total factor productivity.Using the total production function and HP filter method,the total factor productivity of China is estimated.Through the theoretical analysis of the influencing factors of total factor productivity,it is concluded that the influencing factors are system quality,human capital and technological progress.The index of economic freedom is selected as the index of system quality,the data of human capital index report is the index of human capital,and the number of patent authorizations is the index of technological progress.Correlation analysis,Granger causality test,co-integration analysis and regression analysis are made on total factor productivity,system quality,human capital and technological progress.Research shows that the growth rate of total factor productivity has declined sharply since 2008,which was less than 0 after 2013.Institutional quality and human capital not only affect total factor productivity directly,but also affect total factor productivity indirectly by influencing technological progress.Policy recommendations is that,in terms of system quality,the degree of definition and protection of property rights,investment freedom and financial freedom,which need to be improved;And the proportion of education spending and regional disparities,which need to be improved,in terms of human capital.