Efficiency And Total Factor Productivity Growth In China’s Regional Economies: A Perspective Of Inclusive Growth

In recent years, as the replacement of pro-poor growth, inclusive growth has increasinglybecome the focus of concern for economists to be studied. This paper examines efficiency andtotal factor productivity growth in China’s Regional Economies in a perspective of inclusivegrowth and uses data envelopment analysis (DEA) to compute and decompose Hicks-Moorsteenproductivity index in a sample of China’s Regional Economies over the period of1980-2009while considering the income gap in a model of multiplicatively complete TFP index. The majorconclusions are as follows:(1)In a DEA model that prohibits technical regress and productiontechnology is the case of variable returns to scale, on average, the eastern region is better thanthat in the western region;(2)Not considering the income gap will overestimate the total factorproductivity of the three major regional economies, and the view that technological change is themain driving force of the total factor productivity growth for the three major regional economies,but after considering the income gap, technological change is no longer the main source of TFPgrowth, the contribution of efficiency change on TFP growth is significantly higher than thecontribution of technological change on TFP growth;(3)this paper also examines that thereexisted a inverted U-type relationship between per GDP and TFP index, The case withoutconsidering the income gap, only factor endowment structure, FDI, openness and income gap onthe role of productivity growth is not significant, the coefficient of the rest of the influencingfactors are statistically significant. But after considering the income gap, coefficient of factorendowment structure, financial development, foreign direct investment and agriculture factor isstatistically not significant, the other are statistically significant.