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2011•Journal of Guangxi University of Finance and EconomicsRequires access

Provincial Total Factor Productivity in China and Its Sustainable Growth

Tan Mengmeng

Open publisher page 1 citations

Abstract

Based on the method of DEA Malmquist index,this paper calculates the TFP growth speed of 30 provinces in China by using the new capital stock.Then further empirical analysis is made on the reasons for the low technical efficiency.The results show: the TFP maintained annual increasing by 4.2% since China's reform and opening up;and technological progress(3.5%) is the main factor which promote the development of TFP,while technical efficiency is low(0.6%);marketization and lending ritio have a positive effect on improving the technology efficiency;administration cost has serious negative impact on technology efficiency;FDI and saving ratio has slight negative effect.

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What this paper is about

Based on the method of DEA Malmquist index,this paper calculates the TFP growth speed of 30 provinces in China by using the new capital stock.Then further empirical analysis is made on the reasons for the low technical efficiency.The results show: the TFP maintained annual increasing by 4.2% since China's reform and opening up;and technological progress(3.5%) is the main factor which promote the development of TFP,while technical efficiency is low(0.6%);marketization and lending ritio have a positive effect on improving the technology efficiency;administration cost has serious negative impact on technology efficiency;FDI and saving ratio has slight negative effect.

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Available abstract

Based on the method of DEA Malmquist index,this paper calculates the TFP growth speed of 30 provinces in China by using the new capital stock.Then further empirical analysis is made on the reasons for the low technical efficiency.The results show: the TFP maintained annual increasing by 4.2% since China's reform and opening up;and technological progress(3.5%) is the main factor which promote the development of TFP,while technical efficiency is low(0.6%);marketization and lending ritio have a positive effect on improving the technology efficiency;administration cost has serious negative impact on technology efficiency;FDI and saving ratio has slight negative effect.

Key concepts: Total factor productivity, Malmquist index, China, Economics, Index (typography), Marketization, Technical progress, Productivity

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