The Empirical Research on Total Factor Productivity Growth of Regional Rural Enterprises in China
WU Zhong-lun
Abstract
WU Zhong-lun
Abstract
Based on panel data of rural enterprises in China's 30 provinces from 2002 to 2010, using the Malmquist productivity index method, the empirical analysis is done on the total factor productivity (TFP) growth source, differences and changes trend to China's rural enterprises. The result shows that the TFP of China's rural enterprises have grown at an average rate of -6.6% during the investigation, technology efficiency is the decision factor for TFP continuing to decline. The phenomenon of input congestion and resources waste exist seriously in different Regions. The TFP growth has significant regional difference among the eastern, central and western rural enterprises: Technological progress is the main power of TFP growth in eastern rural enterprises, technical efficiency degradation leads to TFP declining of central and western rural enterprises. The Sigma test shows that the technical efficiency exists divergence trend in general, the eastern region exists obvious divergent signs, the central and western region present trend of convergence. At present rural enterprises should pay great attention to the planning, management and regional coordinated development.
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Based on panel data of rural enterprises in China's 30 provinces from 2002 to 2010, using the Malmquist productivity index method, the empirical analysis is done on the total factor productivity (TFP) growth source, differences and changes trend to China's rural enterprises. The result shows that the TFP of China's rural enterprises have grown at an average rate of -6.6% during the investigation, technology efficiency is the decision factor for TFP continuing to decline. The phenomenon of input congestion and resources waste exist seriously in different Regions. The TFP growth has significant regional difference among the eastern, central and western rural enterprises: Technological progress is the main power of TFP growth in eastern rural enterprises, technical efficiency degradation leads to TFP declining of central and western rural enterprises. The Sigma test shows that the technical efficiency exists divergence trend in general, the eastern region exists obvious divergent signs, the central and western region present trend of convergence. At present rural enterprises should pay great attention to the planning, management and regional coordinated development.
Key concepts: Total factor productivity, Malmquist index, China, Panel data, Productivity, Economics, Index (typography), Empirical research