A Comparative Analysis of Total Factor Productivity Dynamic Change and Convergence of Chinese Tertiary Industry's Sub-sectors

Abstract

Abstract:

This paper aims to study the change of Chinese service industry's total factor productivity (TFP) during the period of 2004-2014,. By including polluted gas emissions into the "input-output" research, this paper analyzes the trend of Chinese service TFP change in recent years, measures the traditional and environmental TFP change by Malmquist-Luenberger index, and analyzes the convergence of two types of TFP among several industries. The research indicates that there exists only condition convergence in Chinese service industries, but without absolute convergence. If pollution emissions are taken into consideration, the actual total factor productivity will be undervalued. Studies suggest that decision makers should pay attention to the service industry development efficiency in the field of environmental governance.

Key words: environmental total factor productivity, sub-sectors of the service industry, Malmquist-Luenberger index, convergence test

Xiao Ting. A Comparative Analysis of Total Factor Productivity Dynamic Change and Convergence of Chinese Tertiary Industry's Sub-sectors[J]. , 2017, 29(8): 53-64.

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