Convergence Of Provincial Information Industry TFP Growth In China:2005-2012

The information industry is an important engine of economic growth in developed countries which has a very significant impact on China in the pattern of economic globalization. By the 2008 financial crisis with weak performance of national economies, the information industry was a major force of economic stabilization. During the crucial period in the transformation of our country’s economic structure, the information industry takes the lead role in strategic industries. In this paper, we use the data of 28 regions of China’s information industry from 2005 to 2012 to study TFP convergence. Firstly, we define the information industry, scope, characteristics and current development. Clear the information industry to the economic development of great significance. Secondly, we measure TFP growth of information industry with Malmquist index and analysis the motivation of its formation and development. Further, we analysis the changes in TFP growth of information industry from the perspective of geographic and composition. Again, on the basis of the previous step, we examine the convergence of TFP growth of information industry. Finally, based on empirical findings, we throw out four aspects of recommendations: promoting coordinated regional development, attention to personnel training, building innovation system and reducing government intervention.The results show: Firstly, China’s information industry has an average TFP growth rate of 9.4% in 2005-2012. Technical efficiency and technical progress jointly promote the TFP growth rate of China’s information industry. The TFP growth of trajectory information industry and information services depart from each other. Secondly, the central region of information industry has the highest rate of TFP growth, followed by the western region, and finally the east. It shows that the more developed regions the lower TFP growth is, the more poorer regions the higher TFP growth is. Improved TFP growth rate of information industry stems from technical efficiency and technical progress, information services is just the level of technical progress. Thirdly, within the country, The rate of TFP growth of information industry is greater than information services industry’s. Fourthly, China’s information industry has the existence of ? convergence, conditional ? convergence and convergence club. Government action plays an negitive role in promoting TFP growth of information industry. But economic freedom has a positive effect.