The Measurement Of Manufacture’s Total Factor Productivity And Study Of Its Influential Factors

The manufacturing sector is a foundation industry of the national economy. The level of its development is the measurement of a nation’s comprehensive strength and the main indicator of the degree of modernization. Since reform and opening up, China’s manufacturing industry has been moving very quickly, but the development process is along with the high input, low output, high energy consumption and low efficiency problem. Improving the manufacturing sector’s total factor productivity and enhancing the sustainability of economic growth are the inherent requirements of the development of the manufacturing industry.Therefore, researching the change of the manufacturing sector’s total factor productivity and its influential factors has an important practical significance on understanding the development of China’s manufacturing industry and the promoting of the future development of China’s manufacturing industry. The innovation of this article is that it discusses the change of TFP from different perspectives, such as manufacturing sub-sectors, manufacturing sectors classified according to broad categories and manufacturing sectors classified in accordance with technical standards.By utilizing the DEA-based Malmquist index approach, this article has measured the change of China manufacturing sectors’ total factor productivity, technical efficiency changes and technological progress. The results show that during the period from2000-2011. China manufacturing sector’s total factor productivity has experienced a great improvement in all sectors. Meanwhile, by composing the Malmquist index, we can conclude that the increase of manufacture’s TFP is mainly contributed by technical progress rather than technical efficiency. Besides, the changes of technical progress in all manufacture sub-sectors show the same trend, which all have been experienced obvious increase during2000-2011. However, the changes of technical efficiency showed little decreases or maintained growth with slightly range in some manufacture sub-sectors.Finally, According to the regression we find that The improvement of human resources, increase of R&D, deepening of market openness and continuing opening to abroad have played a significant positive effect on China manufacturing sector’s total factor productivity.