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Total factor productivity of Chinese industrial firms: evidence from 2007 to 2017

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  • Zhao Li
  • Bingyang Lv

Abstract

Accurately measuring industrial total factor productivity (TFP) is considered vital to a country’s economic system. However, in China, the measurement of industrial TFP has been difficult owing to a lack of firm-level data. This study is the first to measure TFP of Chinese industrial enterprises from 2007 to 2017 and makes a rich heterogeneity analysis based on the National Taxation Survey Database (NTSD). Results show that the weighted TFP rises from 3.65 in 2007 to 4.69 in 2017, with an average growth rate of 2.58%. There are obvious differences in industrial TFP among different enterprise sizes, industries, ownership types, export types, and regions, and the growth of TFP tends to have a converge trend. By assessing the ‘Productivity Paradox’ in China, we also find that Chinese exporting manufacturing enterprises are more productive than non-exporting ones.

Suggested Citation

  • Zhao Li & Bingyang Lv, 2021. "Total factor productivity of Chinese industrial firms: evidence from 2007 to 2017," Applied Economics, Taylor & Francis Journals, vol. 53(60), pages 6910-6926, December.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:60:p:6910-6926
    DOI: 10.1080/00036846.2021.1954592
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    Cited by:

    1. Wenhan Ren & Yu Chen, 2022. "Realizing the Improvement of Green Total Factor Productivity of the Marine Economy—New Evidence from China’s Coastal Areas," IJERPH, MDPI, vol. 19(14), pages 1-22, July.
    2. Koray Yıldırım & Neşe Algan & Harun Bal, 2024. "Investment Hysteresis: An Empirical Essay Turkish Case," Evaluation Review, , vol. 48(1), pages 143-176, February.
    3. Cottafava, Dario & Gastaldo, Michele & Quatraro, Francesco & Santhiá, Cristina, 2022. "Modeling economic losses and greenhouse gas emissions reduction during the COVID-19 pandemic: Past, present, and future scenarios for Italy," Economic Modelling, Elsevier, vol. 110(C).
    4. Wen, Huwei & Wen, Changyong & Lee, Chien-Chiang, 2022. "Impact of digitalization and environmental regulation on total factor productivity," Information Economics and Policy, Elsevier, vol. 61(C).

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