The Measurement And International Comparison Of Total Factor Productivity In The Demand Side

The supply and demand of the corresponding production and consumption are the two important links in the social reproduction,with the rapid develop ment of economic globalization,the demand of consumer products becomes diverse,only rely on their own products cannot meet the demands of their consumers.And because of the division of global value chain,the final product includes not only the production methods of domestic manufacturers,but also processin g manufacturers who participate in national production.In view of this,we have the necessary to measure the productivity from the perspective of final demand,to investigate how the consumption structure and its position in the international division influence the total factor productivity in different countries? This is of great significance for us to further clarify our position in the international division and the direction of future development.Different from traditional supply perspective,this paper depicts the characteristics of output from the perspective of final demand,and proposes concept and calculation model of total factor productivity from this perspective.The difference between the supply side and demand side of TFP is mainly manife sted in two points: Firstly,considering the influence of international trade,due to the heterogeneity of the different mode of production and consumption,from the demand side,the various countries' consumption is actually from all over the world which is a package of goods include different proportions,the implied TFP of these goods is different from the results from the supply side which only consider the domestic production capacity;Secondly,considering the contact between departments around the wo rld,from the perspective of demand side,the TFP implied in the final product will be affected by the top countries in value chain or upstream sector,because of the influence of intermediate input,the calculated result is different with the supply side.This paper based on WIOD database,use the world input-output table and social accounts data from 1995 to 2009,from the perspective of national and sector to analyse the differences of TFP in supply side and demand side between the major economies: the European Union,Japan,the United States and China.The results show that at the national level,the TFP of high technology level manufacturing power is lower than the supply side such as the United States,Japan and Germany.In low-tech countries such as China,the TFP of the demand side has increased.At the sectoral level,upstream sectors in industry chain such as Agriculture,Construction,the difference of TFP between demand side and supply side is not big,and the industry whose participation degree in international division is deeper such as Commodities and Primary input materials,Semi-finished and Finished goods industry,the difference of TFP between demand side and supply side is more significant.So for low-tech developing countries such as China,should take an active part in intermediate goods trade,increase the import of high technology content of products and parts,pay attention to improve enterprise innovation ability,enhance their position in the global value chain,increase cooperation with other developing countries and then build its global value chain.