Research On TFP Growth Factor Decomposition Of Logistics Industry In China

As one of the most important productive service industries, the logistics industryplays an important role in promoting other industries as well as economic growth andimproving the capacity of employment. As early as in2008after the outbreak of thefinancial crisis, Chinese central government listed logistics industry as one of the "TenIndustries to be Prospered", which not only reflects the importance of logistics industrybut also shows that China’s logistics industry is still to be developed. Currently speaking,China is a big nation rather than a big power of logistics because domestic logisticsindustry increases in quantity instead of in quality. As a result, there is still not a smallgap between developed countries in Europe and America and China in logistics industry.Although China’s logistics industry grows rapidly in the added value, freight, freightturnover and other output indicators, however, labor and capital also rises substantiallyin the logistics industry, which shows that to comprehensively evaluate the developmentlevel of the logistics industry we mustn’t focus on output without considering the inputs.Only from the perspective of input and output can we get full measure of the efficiencyas well as quality of China’s logistics industry development and thus provide usefulinspiration for its long-term development. Total factor productivity (hereafter TFP forshort), the part that growth rate of output exceeds that of input, is a suitable tool tomeasure the quality of development of the logistics industry in China.Using the panel data of1997-2011, this paper builds a stochastic frontierproduction model to estimate and decompose the TFP growth rate of the logisticsindustry in China. The first chapter introduces the research background, purpose,innovation and research methods, significance, related research at home and abroad.The second chapter is the related concepts and theoretical method, including the conceptof logistics industry, three kinds of efficiency concepts and the TFP theory and method.The third chapter introduces the history and current situation of the development oflogistics industry in China. The fourth chapter is the construction, testing and estimationof stochastic frontier production model. On this basis, the fifth chapter measures anddecompose the TFP growth of China’s logistics industry, analyzes the main reasons of China’s logistics industry TFP growth of regional differences. Finally, the sixth chapterproposes policy suggestions on three main aspects, hoping to provide beneficialinspiration for the long-term development of China’s logistics industry.