Research On China 's Economic Sustainability Growth Based On TFP

Since the reform and opening up, China’s economy has experienced rapid growth for more than thirty years. According to the World Bank, China has entered the ranks of the upper middle-income countries in2011.Economy is often accompanied by a slowdown in economic growth and thus per capita income after entering this phrase, and facing severe pressure on industrial transformation and upgrading. It’s very important for China’s economy to maintain the growth rate of TFP, which is also the key to successfully across the middle-income trap and eventually into the ranks of high-income countries.Firstly, the article comment related research on TFP which focus its study on various fields of china’s economy. Secondly, we use the Malmquist index method based on DEA to solve the growth rate of TFP of China’s29provinces, municipalities and autonomous regions during1978-2011.On the results of the empirical research, we give a comprehensive analysis of the characteristic of economic growth in the past three decades. More importantly, by comparing China and South Korea’s growth rate of TFP contribution to economic growth rate at a similar stage of per capita GDP. the article clarify our country’s stage of development. Given China’s specific conditions, we also focus on several most economically developed provinces if the overall contribution rate has a big difference with South Korea.The results showed that the eastern region is preferred to share the benefits brought by the policy of reform and opening up. Eastern region achieve a lead in development before2008through attracting foreign investment and techniques. However, most of the eastern provinces are increasingly feeling the pressure of industrial transformation and upgrading as a result of the gradually drying up of knowledge flow. Midwest areas begins to undertake the industrial transfer from the eastern region in the21st century, especially after the financial crisis in2008. In fact, china opens the industry share transfer between different areas in China, which will support a sustainable growth of the Midwest areas for a period of time. If eastern provinces improve the contribution rate of TFP like South Korea or even Beijing and Shanghai will decide the sustainability of China’s economic growth in the future.