The Research On The TFP’s Contribution To The Economic Growth In Liaoning

With the development of economics, the growth of TFP, an important indicator of economic efficiency and the potential economic growth, has become the core problem of modern economics. As we all know, northeast region of China is the cradle of our country’s industry, where the resources are reduced sharply due to the development. During the "Eleventh Five-Year" period, the economics of the northeast region grows faster than that of the eastern region. But Professor Yu Xiao, the Dean Institute for Northeast Asia believed that,"The endogenous growth momentum and the mechanism of the northeastern region are not yet mature, and the development is out of balance." To solve this problem, our country has carried out the strategy for the revitalization of the northeastern region. As the most powerful province of the three northeastern provinces, Liaoning also acts as "the eldest son of the Republic". Therefore, Liaoning’s economics takes the lead of other two provinces. And the research on the TFP of Liaoning is an important task which also affects the research on the influential factors of its economic growth.As for the research about the TFP’s contribution to the economic growth of Liaoning province, TFP can reflect the economic growth directly and act as the main basis to change the structure of the regional economics and to boost the technology progress from the perspective of theory. However, from the practical point of view, the analysis about the TFP of Liaoning province can reveal whether the way of economic growth is intensive or extensive, which has a great practical significance for the sustainable advance of various regions’economics in Liaoning. In this thesis, the theory of economic growth and the theory of TFP were summarized and analyzed, using the latest statistical data of Liaoning province. By analyzing and comparing the measurement methods of TFP, I make up my mind to choose the method of DEA-Malmquist index to analyze the present situation and the development trends of TFP in Liaoning province. Besides, I analyze the changes of fourteen representative cities’FTP in Liaoning, as well as their differences during different times from both the technological progress perspective and technical efficiency perspective. Thus we can draw the corresponding conclusions and put forward the related suggestions for various regions about how to develop their own economies.This paper is divided into five chapters:The first chapter is the introduction part. In this part I put forward the purposes of the thesis, present the studying thoughts and methods, as well as the background and the significance of the research. Afterwards, I point out the structural innovation and the associated studying situations both domestic and abroad.The second chapter is the theoretical review part. From the perspective of TFP, I sort out the theory about economic growth, and give a brief introduction about the definitions and the measurement methods of TFP. Besides, I elect the appropriate methods to be applied in the empirical analysis.The third chapter is the empirical part. According to the latest data provided by the Statistical Yearbook of Liaoning, I calculate the stock of fixed capital of Liaoning Province and the input of labor and GDP using related methods. Then, with GDP working as the output factor, while labor and fixed capital investment working as the input factor, I use the non-parametric Malmquist index and DEAP2.1software to calculate the related TFP. And according to this, I analyze the changes trends of TFP in Liaoning province and its contribution to the economic growth. Then I analyze the impact of TFP on the economic growth in different periods from the perspective of technical efficiency and technological progress. At last, I analyze the differences among various regions’TFP of Liaoning.The fourth chapter is the reasons for the different TFP’s contributions to the regional economic growth. Through the analysis about the factors, we can know that the factor of labor is the primary cause, the technology innovation is the basic cause and the FDI as well as the difference of industrial structure are the direct causes for the contribution differences mentioned above.The fifth chapter is the summary of this thesis, which puts forward relevant suggestions combined with the conclusion.The empirical analysis shows us that the economic growth of Liaoning province is still extensive, which mainly relies on the increase of labor and capital for the reason that the sale efficiency of technology is restricted by the combination of factors, the distribution of resources and the ability of management. However, technology is developing all the time, therefore, the increase of TFP mainly relies on the technology advances. Owing to the fact that the differences of TFP between various regions of Liaoning are increasingly larger, we’d better act the following tips to narrow the gap and change the way of economic growth. First, enhancing the labor factor and paying more attention to the innovation is quite necessary; second, we should adjust the industrial structure and change the way of economic growth; third, it is essential to optimize the distribution structure of resources and enhance the distribution efficiency; and at last, we ought to broaden the opening to the outside world.