Analysis On Effect Of Regional Total Factor Productivity Growth On Economic Growth In China's Mainland

With economic development,the Total Factor Productivity growth has gradually become one of the cores of modern economic growth research.It is an important indicator for measuring the technological progress and economic growth quality of a country or region.China's economic development has continuously made new breakthroughs and achieved world-renowned achievements.However,along with economic growth,the problems of imbalances in regional development and widening regional economic differences have become increasingly serious.Economic growth,as the basis of social production and progress,has always been the focus and difficulty of economic theoretical research.China's economy has maintained rapid growth since the Reform and Opening up,but combined with previous studies and comprehensive national conditions,we can find that this high-speed growth is brought by a large amount of labor and capital investment.The achievement of high-quality growth is clearly a hindrance.What's the quality of economic growth in the provinces and regions,whether it is driven by factors or by Total Factor Productivity,and what's the role of technology in economic growth,based on the above,this paper makes a comprehensive analysis and study on the effect of Total Factor Productivity growth on economic growth,in order to find out the interrelation and interaction between them.By analyzing and interpreting the previous studies and drawing on the research results of many scholars,based on panel data from 30 provinces and cities(Hong Kong,Macao and Taiwan were not included in the study,and data on Tibet were missing),eastern,central,western,northeast and the whole country from 1990-2017,the Total Factor Productivity and its decomposition values for each study area and study scale were estimated using the DEA-Malmquist index method and analyzed in combination with the economic growth rate,Total Factor Productivity measured the contribution of growth and factor inputs to economic growth in each of the regions studied.The research results show that:(1)From 1990-2017 s,the average Total Factor Productivity of each province and region has increased to varying degrees and there are regional differences.Among them,the average Total Factor Productivity of eastern,central,western,northeast,and the whole country increased by 5.923%,4.097%,4.130%,3.780%,and 4.197%.The decomposition value shows that the growth of the Total Factor Productivity is mainly driven by the growth of the index of technological progress,while the contribution of the index of efficiency change is limited.Even the index of efficiency change in Henan,Hunan,Guangxi,Yunnan,Qinghai,and Xinjiang have hindered the improvement of Total Factor Productivity,indicating that the current improvement of factor utilization efficiency is insufficient,and efficiency improvement needs to be further improved.(2)Co-integration regression was performed on the economic growth,Total Factor Productivity growth rate,and labor capital stock growth rate of each study area to find the quantitative relationship between the variables in different regions.It was found that the Total Factor Productivity growth per unit of economic growth of 0.8264,0.7370,0.7265,0.8016 and 0.8862 units in the eastern,central,western,northeast,and the whole country;The labor capital stock growth rate per unit of brings economic growth of 0.1889,0.2146,0.1799,0.1744,and 0.1385 units,respectively.It can be seen that the Total Factor Productivity plays a more important role in driving economic growth.This illustrates the need to increase Total Factor Productivity in the future.(3)By calculating the contribution Total Factor Productivity growth rate and factor inputs to economic growth,it was found that only Beijing,Shanghai,Jiangsu,Zhejiang,and Guangdong contributed more than 50% to economic growth,while other provinces contributed less than economic growth 50%,and the average Total Factor Productivity growth contributions to economic growth in the east,central,west,northeast,and the whole country were 48.06%,35.45%,34.68%,36.41%,and 40.38%,indicating that the main source of economic growth is factor input,technology-driven economic growth is still insufficiently motivated.The article analyzes the theoretical basis of economic growth.Through empirical analysis,the VAR model is used to test the co-integration relationship and Granger causality test of Total Factor Productivity growth and economic growth.The correlation between the two is analyzed,and it is found that during the research period,there is a positive relationship between the two.Total Factor Productivity growth and economic growth are Granger's reasons.Total Factor Productivity growth promotes economic growth.The economic growth will encourage enterprises to increase investment in research and development and increase their Production efficiency and Total Factor Productivity have also been improved.Finally,according to the analysis and research conclusions of the article,some policy suggestions are proposed to promote the transformation of the economy to high-quality development,and provide some reference for the formulation of some economic policies.