Regional Disparity and Phase Division of the Total Factor Productivity Growth in China—The Calculation and Decomposing of the Year 1978—2013 Based on Biased Technological Progress

Based on time-varying elasticity production function,capital-output elasticity is equal to the share of capital income; output elasticity of labor share is equal to the share of labor income, and the total factor productivity( TFP) is decomposed into biased technological progress and neutral technical progress. This paper empirically analyzes the data of eastern,central and western regions in China during 1978—2013. The results show that during 1979—2013 TFP in all the regions present downward trend in most years and the increase model of TFP is mainly neutral technical progress. All the regions are labor-biased technological progress before 1997,and capital-biased technical progress after 1997 promotes TFP in the East,while hinders TFP in central and western region. Technological progress bias directly influences TFP increase of all the regions in China. Therefore,improving labor output elasticity and reducing capital-output elasticity is helpful for slowing down TFP decrease in central and western region to promote intensive mode shift of regional economic development.