Study on the Provincial Panel Data of Total Factor Productivity in China's Information Industry

Taking the manufacturing industry of telecom equipments, computer and other electronic devices for example, this paper studies on the information industry's Total Factor Productivity (TFP) and discusses on the future development trends, based on the provincial panel data and applied the variable intercept panel data model. As a result, the "Productivity Antinomy of Information technology" is not found in China's provincial level. The information industry has the feature of scale economy and scope economy. Therefore, the governments of China's less developed regions should be very careful placing information industry in the regional industry structure. Once the information industry is taken as the key industry of regional economic development, the governments should spare no efforts to increase the input, in order to form scale economy.