Research on the total factor productivity of manufacture industry in China

Compared with others, manufacturing industry in china, one of the most important sectors of the national economy, is the engine of promoting the high-speed advancement of the whole national economy. The advancement of national economy mainly depends on the development of manufacturing industry. Many methods can be used to measure the total factor productivity of manufacture industry, the author makes use of DEA-based Malmquist productivity index approach to calculate the change trend of total factor productivity (TFP) during 1995 to 2007, and decomposes the TFP into two components: technological progress and technological efficiency. The empirical results shows that the average increasing rate is 10.9% for manufacturing industry in china during the period, and it has a obvious difference in the contribution of total factor productivity under the terms of technologic rate and technique improvement in different eras. Consequently, this investigation provides some implications for researchers and decision makers.