The Change and Decomposition of TFP in Chinese manufacturing Industry

The total factor productivity(TFP) growth rate of manufacturing industry in China was estimated in this paper with Malmquist index method in data envelopment analysis.The result showed that annual growth rate of TFP averages 8.8% in manufacturing industry.By further decomposition of TFP,we found out that the growth mainly stems from technical progress,while technical efficiency offsets the contribution of technical progress at an average annual rate of 1.4%.By TFP decomposition of the industry,we drew a more meaningful conclusion that the state-owned or monopoly industry generally makes greater technical progress,however,the technical efficiency declined at a shockingly degree;the industry with some competitive edge and a certain technical threshold has significantly improved technical efficiency,but acts as a poor performer in technical progress;the lower the threshold and the fiercer the competition in an industry are,the poorer performance of its technical progress will be.