Research on Management and Determination of Industrial Total Factor Productivity in China

Under the background of supply-side reform and industrial development realization 4.0, this paper studies China's overall industrial total factor productivity and tryt to provide a factual basis for the current management of national economic industries.Thus, this paper uses the panel data of 17 industrial industries in China (matched according to the 2017 China National Economic Industry Classification Standard and the International Industry Classification Standard) from 2000 to 2014, and uses the DEA Manmquist index method to measure the change of total factor productivity.The purpose of this paper is to deeply analyze its composition, evolution and law of total factor productivity and give factual support for current policy on the supply side reform and transformation of economic development mode.Research facts and conclusions can be drawn as follows: First, the overall total factor productivity gradually declines after 2008, indicating that the overall growth rate of China's industry slows down.Second, during the period 2000-2014,there are significant industry differences in total factor productivity.In the period from 2000 to 2008,the TFP of the industrial sector with low technical complexity increased rapidly, and the overall performance was better than other industries.Since 2008, the total factor growth rate of industries with high technical complexity has steadily increased, represented by pharmaceutical, machinery and equipment manufacturing, which are significantly higher than other industries.According to the empirical results, it is necessary to vigorously develop industries with high-precision industries and high R&D investment to promote the overall level of total factor productivity in the industrial sector and accelerate the transformation and upgrading of China's economy.