Research on the Impact of Financial Development on TFP——DEA-Malmquist Index and Hansen Threshold Model Based on Panel Data of Shandong Province, China

Shandong’s TFP growth is higher than Chinese average, but the growth rate has slowed in recent years, appearing the phenomenon that the growth momentum of Shandong’s TFP is insufficient. Using DEA-Malmquist Index to measure Shandong’s TFP growth rate, empirical research from the perspective of financial development finds that financial scale, efficiency of financial institutions, fiscal intervention, and scale of foreign capital utilization have significant nonlinear effects on the growth of TFP. Furtherly, through threshold analysis, the efficiency of financial institutions has a significant threshold effect on TFP growth. Financial scale and fiscal intervention are the main core variables that affect the growth of TFP under the threshold effect, and they have the same effect direction on TFP before and after the threshold value. However, the effect intensity of these two core variables on TFP is different.