Statistical measurement of total factor productivity under resource and environmental constraints

Tinghui Li; Zimei Huang; Benjamin M Drakeford; Tinghui Li; Zimei Huang; Benjamin M Drakeford

doi:10.3934/NAR.2019.1.16

National Accounting Review

2019, Volume 1, Issue 1: 16-27. doi: 10.3934/NAR.2019.1.16

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Research article

Statistical measurement of total factor productivity under resource and environmental constraints

1.
School of Economics and Statistics, Guangzhou University, Guangzhou, China
2.
Economics and Finance Subject Group, Portsmouth Business School, University of Portsmouth, UK

Received: 01 May 2019 Accepted: 10 June 2019 Published: 18 June 2019
JEL Codes: C22, D24, O49, P28

The existing literature on the measurement of total factor productivity (TFP) only considers capital and labour input, ignoring resource and environmental factors. This paper takes resource and environmental factors into the framework of TFP measurement by constructing the environmental comprehensive indexes. Then the DEA-Malmquist index method is employed to analyze TFP from 1978 to 2016 under resource and environmental constraints. The results show that under resource and environmental constraints, China's TFP (overall) is at a slow rising stage. China's TFP is closely related to macroeconomic fluctuation, macroeconomic regulation, directional control and reform of the economic system—having impact on the changing trend and fluctuation extent of TFP.
- resource and environmental constraints,
- total factor productivity,
- DEA-Malmquist index
Citation: Tinghui Li, Zimei Huang, Benjamin M Drakeford. Statistical measurement of total factor productivity under resource and environmental constraints[J]. National Accounting Review, 2019, 1(1): 16-27. doi: 10.3934/NAR.2019.1.16

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Abstract

The existing literature on the measurement of total factor productivity (TFP) only considers capital and labour input, ignoring resource and environmental factors. This paper takes resource and environmental factors into the framework of TFP measurement by constructing the environmental comprehensive indexes. Then the DEA-Malmquist index method is employed to analyze TFP from 1978 to 2016 under resource and environmental constraints. The results show that under resource and environmental constraints, China's TFP (overall) is at a slow rising stage. China's TFP is closely related to macroeconomic fluctuation, macroeconomic regulation, directional control and reform of the economic system—having impact on the changing trend and fluctuation extent of TFP.

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