Research on the Fluctuation and Factors of China TFP of IT Industry

Abstract

The production capacity of the industry itself is booming in the development of the information technology (IT) industry in China. At the same time, we should clearly understand that in the process of industrial development and aggregation, there are very significant features, such as differences in investment in output between software and hardware development, regional differences, and even IT industries in different levels of cities. The development also has a clear division of labor and constraints. Furthermore, it is necessary to study the fluctuations of the total factor productivity (TFP) of the IT industry and the analysis of the influencing factors in China. This is not only a review of the past development of the IT industry of China, but also the IT in the new era and the new situation. The industry gives correspondingly targeted and feasible recommendations for China. This paper attempts to calculate the TFP of the IT industry of the 23 provinces in China from 2007 to 2016, describes the fluctuations of the TFP of IT industry in China, using the decomposition indicators to analyze the constituent factors and make recommendations. After the argumentation, this paper chose the DEA-Malquist index method and uses the Deap2.1 system. The empirical analysis found that the TFP of China’s IT industry fluctuated less, with an average annual growth rate of 10.7%. Its pure technical efficiency continues to be improving, and its scale efficiency is significant, but its regional differences are large. The differences are not only reflected in the relative value of inputs, but also in the progress of the productivity breakdown.