2021•SustainabilityOpen access

The Measurement and Influencing Factors of Total Factor Productivity in the Chinese Rural Distribution Industry

Chaoxun Ding, Ruidan Zhang

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Abstract

Total factor productivity (TFP) is critical to the sustainable development of the rural distribution industry. Improvements in productivity of the rural distribution industry can promote the high-quality development of the Chinese distribution industry. Studying the characteristics and influencing factors of total factor productivity in regard to the rural distribution industry in China is significant for promoting the transformation and development of the rural distribution industry. This paper uses the DEA–Malmquist Index to measure the total factor productivity (TFP) of the Chinese rural distribution industry and its decomposition index, and uses a panel data model to empirically study its influencing factors. The results show that, from 2008 to 2018, the TFP of the Chinese rural distribution industry showed a trend of rising first and then fluctuating and declining, with an average annual growth rate of 2.93%; the fluctuation direction of the TFP of the rural distribution industry in the eastern and western regions of China is basically the same, which has had a reverse change relationship with the central and northeast regions for many years. The industrial structure, urbanization rate, rural informatization rate, and conditions of the transportation facilities have significant impacts on the TFP of the rural distribution industry, among which the informatization rate has the greatest positive impact.

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What this paper is about

Total factor productivity (TFP) is critical to the sustainable development of the rural distribution industry. Improvements in productivity of the rural distribution industry can promote the high-quality development of the Chinese distribution industry. Studying the characteristics and influencing factors of total factor productivity in regard to the rural distribution industry in China is significant for promoting the transformation and development of the rural distribution industry. This paper uses the DEA–Malmquist Index to measure the total factor productivity (TFP) of the Chinese rural distribution industry and its decomposition index, and uses a panel data model to empirically study its influencing factors. The results show that, from 2008 to 2018, the TFP of the Chinese rural distribution industry showed a trend of rising first and then fluctuating and declining, with an average annual growth rate of 2.93%; the fluctuation direction of the TFP of the rural distribution industry in the eastern and western regions of China is basically the same, which has had a reverse change relationship with the central and northeast regions for many years. The industrial structure, urbanization rate, rural informatization rate, and conditions of the transportation facilities have significant impacts on the TFP of the rural distribution industry, among which the informatization rate has the greatest positive impact.

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Available abstract

Total factor productivity (TFP) is critical to the sustainable development of the rural distribution industry. Improvements in productivity of the rural distribution industry can promote the high-quality development of the Chinese distribution industry. Studying the characteristics and influencing factors of total factor productivity in regard to the rural distribution industry in China is significant for promoting the transformation and development of the rural distribution industry. This paper uses the DEA–Malmquist Index to measure the total factor productivity (TFP) of the Chinese rural distribution industry and its decomposition index, and uses a panel data model to empirically study its influencing factors. The results show that, from 2008 to 2018, the TFP of the Chinese rural distribution industry showed a trend of rising first and then fluctuating and declining, with an average annual growth rate of 2.93%; the fluctuation direction of the TFP of the rural distribution industry in the eastern and western regions of China is basically the same, which has had a reverse change relationship with the central and northeast regions for many years. The industrial structure, urbanization rate, rural informatization rate, and conditions of the transportation facilities have significant impacts on the TFP of the rural distribution industry, among which the informatization rate has the greatest positive impact.

Key concepts: Total factor productivity, Distribution (mathematics), Malmquist index, Index (typography), China, Productivity, Agricultural economics, Panel data

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