Research On The Difference Of Region Total Factor Productivity And Its Influential Factors In China’s Manufacturing Industry

Total Factor Productivity reflects the overall production efficiency of economy.As an important industry in national economy manufacturing is the main sign of the strength of a country.In the development process of China ’s manufacturing industry we are facing the problem of the development mainly relies on the factors driving and low efficiency.Improving the level of manufacturing total factor productivity is the inevitable requirement of the development of national economy.China’s regional development is not balanced and the region Total Factor Productivity in manufacturing has big difference.This study on the difference of region total factor productivity a nd its influential factors has great practical significance.This paper makes the following seve ral aspects of research.F irstly this paper introduces the connotation of Total Factor Productivity and its growth,explains the methods of Total Factor Productivity estimation and introduces the relative factors of regional Total Factor Productivity growth.Secondly,this paper estimates the Total Factor Productivity growth and its decomposition of 31 provincial-level region from 2003 to 2012 via DEA-Malmquist method then analyze the regional differences.In central and western regions manufacturing total factor productivity growth is faster than the eastern region and technological progress is the main reason of the total factor productivity growth.Then this paper analyze the trend of regional manufacturing total factor productivity growth based on the standard deviation ellipse.Thirdly,this paper analyzes the relative factors with a panel data of 31 provinces from 2003 to 2012 via econometric regression analysis.According to the results,foreign direct investment,the infrastructure,the level of human resources,R&D and the proportion of the tertiary industry have significant impact on the total factor productivity.Then based on the results of empirical analysis this paper suggest that government should promote foreign investment,strengthen the construction of infrastructure and human resources training,increase R&D investment and speed up the industry transformation,so as to promote total factor productivity of manufacturing industry.