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《Nankai Economic Studies》 2007-04
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Total Factor Productivity and Source of Regional Economic Growth:Non-parametric Production Frontier Analysis on the Large and Medium-sized Industrial firm of 28 Provinces during 1995—2004

Tu Zhengge H(School of Economics, HuaZhong Normal University,430079)  
Many researchers suggest Chinese economic growth greatly relies on a mass of capital. Using the Non-parametric production frontier approach and a province-level panel data of 28 provinces, this paper examines the total factor productivity growth of China’s large and medium-sized industrial enterprises sector during 1995—2004. The major findings include: (1)The average growth of large and medium-sized industrial enterprises is 15.5%, 60% of which may attribute to the growth of total factor productivity. The growth of TFP has become an increasingly leading factor to the growth of industry, its portion to the growth of industry rises from -9.6% of 1996 up to 18.2% of 2003 and 10.4% of 2004, Whereas the contribution of the increase of capital and labor to the output is declining, falling from 13.5 percentage points in 1996 to 0.7 percentage points in 2004.(2)Among TFP, the technological progress and the scale economy efficiency gradually display their prominence, the technological progress contribution to industrial growth is 5.2% and scale efficiency is 3.3%.(3)Four major factors to the fast increase of TFP are following: province-level competition, imitation and modeling, the globalization of economy and foreign investment and property right reform and the economical expansion. To sum up, the TFP, especially technological progress and scale economy efficiency are the key factor to the regional economic growth.
【Fund】: 国家社科基金项目“环境、能源约束下的中国工业增长模式研究”(项目号:07BJY019);; 湖北社科基金项目“湖北工业增长模式研究”(项目号:2007-030)的研究成果。
【CateGory Index】: F207
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