Productivity Growth, Technological Progress and Efficiency Change in Chinese Manufacturing Industry: A DEA Approach Productivity Growth, Technological Progress and Efficiency Change in Chinese Manufacturing Industry: A DEA Approach
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This study employs a data envelopment analysis (DEA) approach to analyze total factor productivity (TFP), technological progress and efficiency change in Chinese manufacturing production from 1993 to 2002. The Malmquist (1953) productivity index measures are decomposed into technical change index and efficiency change index. This Malmquist productivity index can help us to identify the contribution of the improved efficiency or the technological progress to Chinese manufacturing productivity growth. The results show that the TFP in Chinese manufacturing sector annualy rose 2.4 percent on average during the 1994-2002 period. The average annual change rate of technical progress was 2.4percent while that of technical efficiency was 0.3 percent. It indicates that the TFP growth in Chinese manufacturing sector is mostly attributable to the technological progress although the efficiency improved during this period.
- The Economic science
The Economic science 53(2), 25-37, 2005-09