An Empirical Study on the Contribution of TFP to Economic Growth in Shanghai

As the total factor productivity(TFP) is an important indicator to measure the efficiency of an economic entity,the paper estimates the total factor productivity growth rate by taking advantage of Solow Residual Method and analyses quantitatively total factor productivity growth and sources of economic growth for the period of 1979 to 2011 in Shanghai.The results show that the average annual growth rate of total factor productivity was 6.06%,and its average contribution to economic growth was up to 50.56% from 1992 to 2011,which means that total factor productivity is playing an increasingly important role in economic growth of Shanghai.