- 期刊
Decomposition of Provincial Total Productivity in China
摘要
Under the situation in which China's economic growth has entered a new normal state, it is particularly important to change the mode of economic development and increase the role of total factor productivity in economic growth. This article uses a brand-new method to decompose and analyze total factor productivity and decompose it into two items representing the efficiency of China's industrial production and the relative efficiency of three industries. The study found that: (1) From 2002 to 2015, the proportion of capital output in China has increased year by year. Excessive capital investment results in diminishing marginal efficiency of capital and lower productivity. This study shows that China's economic growth in recent years still relies mainly on investment, and economic growth needs to be improved. (2) Of the factors that cause total factor productivity fluctuations, the share of the the secondary industry productivity shows a steady decline. The relative efficiency index shows a steady increase in the factors affecting total factor productivity, but the second industry productivity fluctuations. The share of factors affecting total factor productivity remains above 50%. This shows that the absolute efficiency of the secondary industry has become less and less important for total factor productivity, but it still occupies absolute importance.