Deap-Malmquist Productivity Index in China and Its Decomposition During 1985-2008

Abstract

Based on Deap-Malmquist index during 1985- 2008, the empirical analysis shows that: total factor productivity growth improve by period in China. Our economic growth mode transfer steady, but not balanced. Among them, the east and northeast China as a whole technology progress faster, efficiency improve obviously, economic growth mode transformation walk in the front in the whole country. The western region is basically synchronous with the national, efficiency improved clearly, and technological progress is slow; the central region technology stagnation, inefficiency, the change of the economic growth mode is seriously lagging behind. Technical progress is first force to promote the economic restructuring, pure technical efficiency contribution to the second, and the influence of international economy environment is larger too. So, it is necessary to increase investment in science and technology innovation, to vigorously develop modern service industry, to expand domestic demand, coordinating regional development, maintain a steady improvement in productivity, and promote economic growth mode transformation. Since the reform and opening, our country's economy is developing with more than 30 years of growth, the average annual GDP growth at 9.95%. But with the increasing restriction of the resources and environment, the quality and efficiency of economic growth has become the main factor to restrict the sustainable development of China's economy. Many experts and scholars think, China's economic growth mode is inputs-led growth with a high investment and low efficiency. Therefore, the purpose of this study is comprehensive analyze and judg the trend of economic growth in China and its motive structure change, and objective evaluate the trend to transformate the mode of economic growth in China. This paper use data envelope analysis method to study the inter-provincial empirical data from 1978 to 2008 for productivity , compare with inter- provincial, regional economic growth structure, reading between the inter-provincial productivity gains and their