| As the leading sector of the national economy, China's industrial sector has made great achievements, along with environmental degradation. This paper employs the Malmquist-Luenberger productivity index to calculate productivity growth of China's industrial sector from 2003 to 2011 under the consideration of environmental issues. By comparing with the traditional Malmquist productivity index, the evidence significantly reveals that productivity growth in China's industrial sector is overestimated if environmental factors are ignored. Environmental factors are critical indicators for total factor productivity of sustainable growth. |
