The Measure of Total Factor Productivity (TFP) and Spatial Difference Analysis of China's Service Industry:A Study Based on Nonparametric Malmquist Index Method

Through a nonparametric Malmquist index approach,this paper has analyzed the causes of change,the space differences and the trend of change of total factor productivity in China's service industry with panel data from 2005 to 2009.Also it further decomposed the total productivity into technical efficiency and technical progress.Research results show that Chinese service industry as a whole still presents the extensive growth mode;the total factor productivity presents negative growth,but the speed of growth is slowed down.The space differences of the service development level are significant,with the service development level of the Eastern region higher than that of the Midwest,in which the service development level of the Northeast and the Northwest is relatively backward;and the technical progress and the technical efficiency have different effects in time and space on the total factor productivity of China and its regional service industry.