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Total factor productivity and the factors of green industry in Shanxi Province, China

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  • Malin Song
  • Hui Li

Abstract

Based on industrial panel data from 11 prefecture‐level cities in Shanxi Province from 2008 to 2016, two kinds of total factor productivity (TFP) are measured: With and without the consideration of environmental factors. The specific decomposition of TFP under these two conditions is then discussed. Finally, the factors of TFP are studied in a green industry context. The results indicate the following: (a) The TFP's annual growth rate considering environmental conditions is higher than that without such consideration; (b) if environmental factors are neglected, TFP improvements primarily depend on technological progress; (c) when considering environmental factors, both technological progress and improved technological efficiency promote the growth of green TFP (GTFP), but this still primarily depends on substantial technological progress, with an annual average growth rate that reaches 10.2%; and (d) among factors, the economic development level, degree of openness, and urbanization positively correlate with the GTFP, while the industrial structure and degree of informatization significantly and negatively correlate with GTFP.

Suggested Citation

  • Malin Song & Hui Li, 2020. "Total factor productivity and the factors of green industry in Shanxi Province, China," Growth and Change, Wiley Blackwell, vol. 51(1), pages 488-504, March.
    • Handle: RePEc:bla:growch:v:51:y:2020:i:1:p:488-504
    DOI: 10.1111/grow.12339
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    Cited by:

    1. Wenhan Ren & Jing Ni & Wen Jiao & Yan Li, 2023. "Explore the key factors of sustainable development: A bibliometric and visual analysis of technological progress," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 492-509, February.
    2. Ngo, Thanh & Trinh, Hai Hong & Haouas, Ilham & Ullah, Subhan, 2022. "Examining the bidirectional nexus between financial development and green growth: International evidence through the roles of human capital and education expenditure," Resources Policy, Elsevier, vol. 79(C).
    3. Yingyu Zhu & Yan Zhang & Huilan Piao, 2022. "Does Agricultural Mechanization Improve the Green Total Factor Productivity of China’s Planting Industry?," Energies, MDPI, vol. 15(3), pages 1-20, January.
    4. Yakun Wang & Jingli Jiang & Dongqing Wang & Xinshang You, 2022. "Can Mechanization Promote Green Agricultural Production? An Empirical Analysis of Maize Production in China," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
    5. Feng Ye & Zhongna Yang & Mark Yu & Susan Watson & Ashley Lovell, 2023. "Can Market-Oriented Reform of Agricultural Subsidies Promote the Growth of Agricultural Green Total Factor Productivity? Empirical Evidence from Maize in China," Agriculture, MDPI, vol. 13(2), pages 1-20, January.
    6. Rongrong Liu & Dong Chen & Suchang Yang & Yang Chen, 2021. "Evaluation of Green Development Efficiency of the Major Cities in Gansu Province, China," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    7. Xi Liang & Pingan Li, 2020. "Empirical Study of the Spatial Spillover Effect of Transportation Infrastructure on Green Total Factor Productivity," Sustainability, MDPI, vol. 13(1), pages 1-12, December.
    8. Wang, Miao & Feng, Chao, 2021. "The win-win ability of environmental protection and economic development during China's transition," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    9. Meiling Wang & Silu Pang & Ikram Hmani & Ilham Hmani & Cunfang Li & Zhengxia He, 2021. "Towards sustainable development: How does technological innovation drive the increase in green total factor productivity?," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 217-227, January.

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