Analysis of Exogenous Factors Affecting TFP Growth of China’s Telecom Industry

Abstract

Since 1998, the telecommunications industry in China has gained the great growth. Hence, the telecommunications charges have been continuously lowered, telecommunications technical services have been persistently innovated, and the telecommunications users and business revenues increased constantly, having exerted great effect on the society. But there are also new questions ahead: the TFP has gradually slowed down since 2011, and the unbalanced development is shown in the eastern, middle and western regions, but some areas are undergoing extensive growth. The paper researches exogenous factors affecting China telecommunications industry TFP growth. The result pointed out that the level of economic development and degree of industrialization had contributed, to some extent, to improving the TFP growth rates of the telecommunications industry; Population scale and population density played a positive role in promoting the TFP growth rates of the telecommunications industry; Technological innovation had no effect on the telecommunications industry TFP, but there appeared the inhibition efficiency trend.