Measurement And Decomposition Of Total Factor Productivity In China's Manufacturing Industry

The report of the 19 th National Congress of the Communist Party of China clearly pointed out that China's economy has shifted from a high-speed growth stage to a high-quality development stage,and is in the process of transforming the development mode,optimizing the economic structure,and transforming the growth momentum.The strategic goal of China's economic development is to build a modern economic system.We must adhere to quality first,efficiency first,supply-side structural reform as the main line,promote economic development quality change,efficiency change and power change,and improve total factor productivity.The key to building a modern economic system is to promote three major changes,the purpose is to improve the total factor productivity.This is also the first time that “all-factor productivity” has appeared in the report of the party congress,highlighting the improvement of total factor productivity.A well-off society has the important significance of opening a new journey of building a socialist modernized country.Manufacturing is an important industry in the country's economic development.The level of manufacturing development is an important indicator to measure the comprehensive strength of a country.Since the reform and opening up,China's manufacturing industry has relied on abundant labor factors,high investment and export-oriented development models to jointly promote the sustained and rapid growth of China's economy and create a "Chinese miracle" for world economic development,which has attracted worldwide attention.However,with the acceleration of China's population aging process,the demographic dividend no longer has an absolute advantage.Relying on the government's large-scale high investment and export orientation to promote China's rapid economic growth is no longer sustainable.Overall,China's economy Downside pressures continue to increase,and the economy continues to experience rapid growth.So for China to enter the new normal,how to achieve sustained economic growth,high-quality growth,and how to cross the "middle income trap" is a very important issue that we are paying attention to at this stage of academic discussion and policy formulation.According to the theoretical framework of modern economic growth,labor,capital and technology are the source of economic growth.Under the premise that capital and labor do not have a large advantage,only relying on technological progress can make China's economy continue to grow at a high quality,so that China can leapfrog.“Middle income trap”,then this technological advancement actually refers to the growth rate of total factor productivity(TFP).Therefore,this paper will deeply study the total factor productivity of China's manufacturing industry,starting from the enterprise's total factor productivity,combining relevant theories and empirical methods to measure and decompose the total factor productivity of China's enterprise-level manufacturing,and analyze the relevant results.Exploring the relevant factors affecting the total factor productivity of China's manufacturing industry,and exploring the main ways to improve the total factor productivity of China's manufacturing industry,which has important practical significance for the transformation and upgrading of China's manufacturing industry and the improvement of manufacturing efficiency,and promotes China's economy.Quality development and the construction of a modern economic system have strong strategic significance.This paper will study the total factor productivity of China's manufacturing industry in five parts.The first part mainly expounds the background,purpose and significance of the study of total factor productivity,and then summarizes the related literature on the study of "all-factor productivity".Finally,it explains the research ideas,research methods,innovations and possible shortcomings of this paper.The second part mainly introduces the relevant theories involved in this paper,including manufacturing related theories,total factor productivity related theory,total factor productivity measurement methods and comparisons,total factor productivity decomposition methods and comparisons.The third part mainly introduces the data processing process and the measurement process and results of total factor productivity.The OP method is used to measure the total factor productivity of China's manufacturing enterprises,and the results are analyzed based on the results.The fourth part mainly decomposes the measurement result of total factor productivity by MP method,and analyzes the decomposition result appropriately.The fifth part is based on the above measurement and decomposition results of total factor productivity,and discusses the countermeasures and suggestions to improve the total factor productivity of China's manufacturing enterprises.