The Calculation And Discussion Of Total Factor Productivity

Contemporary China's sustained and rapid economic development, however problems showing more and more, the quality of economic development is being questioned, it is hard to overestimate the economic efficiency. Thus, measurement of total factor productivity has certain practical significance.Total factor productivity is in addition to the labor and capital's influence on the output elements and is Neo Classical faction used to measure an indicator of economic growth and technical progress, a lot of it is calculated, but each has its advantages and disadvantages, after exclusion. In this paper, the Solow residual method is calculated.In the selection of the study area, this paper to the city area as the research object reasons three. First, cities under the jurisdiction of the county and a number of county-level city each are not identical; the second, all cities under the jurisdiction of the county, the number is not static; third, cities and municipal districts is where the city the core, take city area as the object of study is representative.In the selection of the data, the output indicators by GDP, and divided by GDP level reduction index to calculate the real GDP, labor force indicators used is the number of employees, capital indicators by the capital stock, and since there is no readily available data on the index, so by scholars of comparative measure method of the advantages and disadvantages. Finally, the whole society investment in fixed assets, price indices of investment in fixed assets, depreciation rate, the four base period capital stock index were calculated to get the data of the capital stock, and the index selection is explained. In selection of the data there are several issues. First, no 1992 and 1993 GDP, in 2009 and 2010, fixed asset investment data since the large-scale deletions in Guangdong Province, the rest part of the city of missing data, the way is of missing data in adjacent years data calculation of mean or geometric mean; second, because part of the city is upgraded from the city and county, or is some years statistical caliber changes lead to abnormal data; third, different versions of the different Yearbook or the same yearbook data in the same year the same indicators of different. Because of the abnormal data caused by the selection of some data, in the calculation analysis, the total factor productivity of the abnormal data is replaced by 0, in order to reduce the error.The research in learning and before we conclude on the basis of the academic achievements of the scholars, the Solow residual method of from 1991 to 2010 years Chinese 215 cities total factor productivity growth rate is calculated, and the middle of the problem are briefly discussed. In addition, a simple assessment for the reliability of the results of the first, the Solow model still has a lot of drawbacks, because the Solow residual is the error term, but not all of the production function, resulting in increased output factors are able to bring technological breakthroughs, the residual value contains Suo Luo too wide, can not truly reflect. The degree of technology, especially China in the stage of economic transition, the error caused by the Solow model is more obvious; second, in the selection of statistical data in terms of imperfections and some missing data will increase the error; third, from GDP, used to represent the output, according to the Chinese conditions should be inflated. The depreciation of capital stock index in all of the city in 5% is obviously not reasonable, with employees said the labor input measure should not be Indeed.From the point of view of regional position, the total factor productivity of the eastern and western regions of the Middle East and the northeast old industrial area was analyzed, and the total factor productivity was found from the whole point of view, showing a trend of decline. If a simple arrangement, then for the total factor productivity, from high to low as: the northeast old industrial zone, central, eastern coastal areas and the western region. From the time series, the total factor productivity showed a rise and fall and the rise of a little more than a gesture. From the point of view of the size of cities, large cities in terms of total factor productivity, stronger than the small cities, many, but not strictly positive correlation, should be one of the best cities in the middle column.Through the research of Wuhan city circle we found two problems, one is the TFP of Wuhan and significantly better than the rest of the city. It is proved that the big cities in terms of total factor productivity does have certain advantages; the second is the current Chinese urban circle problematic: Circle City incompatibility, in pursuit of their own interests to the overall concept, the concept of cooperation is not strong,. The total factor productivity of city circle is generally lower, and the technology promotion is not obvious.For suggestions to improve total factor productivity, the state at the strategic level should the transfer of capital and labor inputs from east to west, for scholars, should have engaged in the research of total factor productivity(TFP) of scholars and effective organized to communicate with each other, so that the total factor productivity research can be faster and better development.