2009•The Journal of Financial ResearchRequires access

TFP Growth and Its Determinants in China during the Reform Period(1978～2006):A Malmquist Index Analysis Based on Provincial Panel Data

Bai Lon

Abstract

This paper employs Data Envelope Analysis(DEA) method to calculate and decompose TFP growth in China during the reform period based on panel data with 29 provinces.The authors find that the yearly TFP growth rate is about 3%and accounting for 30%of economic growth during 1978-2006.TFP growth seems converge,not decrease however;technical efficiencies and technical changes are substitutable with each other in 1980,and it is the technical changes that cause TFP growth since 1990.And in China compared with the middle area,the east and west areas enjoy higher TFP growth.

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Key concepts: Total factor productivity, Economics, China, Panel data, Malmquist index, Index (typography), Technical progress, Growth accounting