Comparison Of Total Factor Productivity Of Three Provinces In Northeast China

Total Factor Productivity(TFP) is an important indicator in researching the quality of economic output. It's the fundamental driving force of economic growth. The estimation of TFP plays an important role. Not only helping to determine the economic development of the country or the region, but also guiding to make national macro-policies and regional economic policy planning. It is an important basis in determine the stage of economic development for the country and the region.At the very beginning of researching the productivity ,people paid most of their attention to the labor productivity. That is single-factor productivity. The productivity of capital investment started to attract the scholar's attention when the economic contribution of capital investment increased gradually. After World War II, the quality of economic productivity came first. Our research focus was the single-factor productivity in China in the 1950s. Then turned to the TFP since 1979. Research content covers the theory research ,the difference between countries and the difference between the industries. All of these supply strong basis for the formulation of economic policy. This paper summed up the domestic and foreign relevant theories base on the past research on the TFP. A detail introduction in TFP measure was made both parametric methods and non-parametric methods. the research method of the TFP in Northeast China is non-parametric method, and try to explain it. There are four chapters:The first chapter is mainly about the basis theory and the research method. Introduce the basic concepts and the development of the research methods. make a clear elaboration on the representation method, the research both in China and other countries and the most popular method all over the world. The domestic TFP research method is the main part of this chapter.The content is the research on TFP in Northeast China which is as a whole part.Try to analyze the TFP based on the in-and-output data from 1978 to 2008 in the second part. Its productivity function is the Translog Production function. Discuss the underlying causes of the rapid development in the old industrial bases base on the TFP. For one thing, we can see clearly that form 1979 to 2008, they all rely on capital investment to improve the TFP compare northeast China with the whole country. It was a bit of less than that of the whole country's between 1999 and 2004. And the capital input increased obviously since 2004. For the other hand, analysis why it was. The TFP play an important role when the productivity grew slow between 1995 and 2004. The capital input play an important role after 3003 since"Revitalizing old industrial bases in Northeast China" policy was introduced.In the third chapter , it is the comparison among the northeast China. Try to analyze the TFP based on the in-and-output data from 1978 to 2008. Its productivity function is the Translog production function.try to analysis why the differences come up. And sum up the advantages and disadvantages. The economic came to the top in 1983,1987 and 1993. Both the direction in economic grew and the TFP grew were the same. The economic grew slow after 1995. Since"Revitalizing old industrial bases in Northeast China" policy was introduced, there comes difference. The development speed of Heilongjiang province is the highest and its TFP contribution is the highest, Liaoning province comes second. The TFP contribution in Jilin province is the lowest, but the capital contribution comes equal to Liaoning province.There is the advice for northeast China about improving the TFP. Analyze the TFP growth in northeast China in the view of the regional economy. Compare the country's whole economic environment with special environment in northeast China. Point out why the economic increased slow in the 1980s and supply some operable advice. For example, there are great differences among the three provinces. In the nearest 10 years, Liaoning province and Heilongjiang province have a steady increase, when Jilin province is not. Liaoning province should develop the Technology-based industries for its TFP contribution is very low and its input contribution is higher. Jilin province can train excellent technical talents to improve its TFP for its contribution of labor input is the highest. Heilongjiang province is affected by the TFP. It has great potential both in the increase of the capital input and the labor input. Heilongjiang province can Integrated Development of Jilin Province and Liaoning Province model. Implement preferential policies for personnel training. Vigorously develop science and technology under the steady growth in capital input and labor input to promote the growth of total factor productivity.