Contribution Degree of Labor, Capital and Agglomeration to the Production: A Case Study of China Textile Industry

The object of this paper is China textile industry, Cobb-Douglas production function including variables of labor, capital and agglomeration level is constructed and the data of 31 provincial regions from 1990 to 2007 is used to examine the contribution degree of factors to the output. The result of multiple regression analysis shows, that the contribution degree of capital to the output is the highest among the three variables, industrial agglomeration is an important factor improving productivity, and the contribution degree of labor is lowest. As a labor intensive industry, the future development of China textile industry couldn't depend on input of more labor, capital and industrial agglomeration will play important role to the development of China textile industry.