Study on Productivity of Chinese High-tech Industry -An Empirical Analysis Based on Provincial Panel Data

This paper uses the stochastic frontier model (SFA) to measure the change of total factor productivity (referred to as TFP) of high-tech industry of China's different regions, based on panel data of China's high-tech industry from 2000 to 2014. The study shows that during the sample period the TFP growth rates of high-tech industry of China on the whole and the eastern, central and western regions of China first increased, then declined and stayed relatively stable in recent years. The TFP growth rates of the eastern, central and western regions differ from each other. Technical progress and scale efficiency growth are the drivers of the growth of TFP of China's high-tech industry, but technical efficiency plays a negative role. Further results show that industrial clustering, export trade and human capital have positive effects on the TFP of high-tech industry, R&D investment and the introduction of technology have also positive effects but not significant.