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Disaggregate productivity growth sources of regional industries in China

  • Lan-Bing Li
  • Cong-Cong Zhang
  • Jin-Li HuEmail author
  • Ching-Ren Chiu
Article
  • 37 Downloads

Abstract

This paper extends a global slack-based productivity indicator and constructs a unified framework that consists of global and factor levels of total factor productivity (TFP) to evaluate the performance of regional industries, thus enabling global productivity improvement based on factor-level sources. Evaluating regional industrial performance in China during 1995–2014, the findings reveal that rapid growth of industry in China is not only driven by a huge amount of input, but also by TFP improvement, with industrial productivity driven mainly by technology progress and presenting a gradually increasing trend. Regional productivity performances are imbalanced, in which the east ranks first due to its dual advantages of input and output factors. For source identification, input and output jointly contribute to industrial productivity improvement, but output has a much higher contribution ratio to industrial productivity improvement than input, because it is mainly rooted in desirable output. Finally, on the input side, labor is the primary factor driving input productivity improvement followed by energy, while capital productivity shows very slight growth.

Keywords

Global slack-based productivity indicator (GSBPI) Factor-level productivity indicator Regional industrial growth Source identification 

JEL Classification

D24 O14 O47 R11 

Notes

Acknowledgments

The first author is grateful for financial support from the National Natural Science Foundation of China (71673151) and the Fundamental Research Funds for the Central Universities (63192310). The third and fourth authors thank Taiwan’s Ministry of Science and Technology for partial financial support (MOST106-2410-H-009-047 and MOST105-2410-H-025-027). The authors thank two anonymous referees, an associate editor, and the chief editor of this journal for their valuable comments.

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.China Regional Economics Application LaboratoryNankai UniversityTianjinChina
  2. 2.Collaborative Innovation Center for China EconomyTianjinChina
  3. 3.Institute of Urban and Regional EconomicsNankai UniversityTianjinChina
  4. 4.Institute of Business and ManagementNational Chiao Tung UniversityTaipeiTaiwan
  5. 5.Department of Recreation and Sports ManagementUniversity of TaipeiTaipeiTaiwan

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