Research on TFP change and convergence of China’s regional real estate industry

Abstract

The added value method is used to screen the input and output indicators of the real estate industry. The DEA-Malquist method was used to measure the total factor productivity (TFP) of the real estate industry in China’s 30 provinces from 2006 to 2017. Further, the convergence test of the real estate industry TFP in eastern, central and western China was conducted. It was found that the average growth rate of real estate industry TFP in China’s 30 provinces during the period was 3.3%. Technical efficiency was the main driving force for TFP growth, and the contribution of technological progress was relatively small. In the improvement of technical efficiency, pure technical efficiency is obviously improved, and the improvement of scale efficiency is limited. The absolute β convergence test was carried out. From the national perspective, the TFP gap in the real estate industry in each province has a significant narrowing trend; In terms of regions, the TFP gap in the real estate industry in the eastern provinces has a narrowing trend, but it is not significant; The growth of TFP in the real estate industry in the central region has a significant catch-up characteristic, and the TFP gap between provinces has gradually narrowed; The TFP gap in the real estate industry in the western provinces has significantly expanded.