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The paper analyses the productivity of the 29 industries of ZheJiang Province based on the data in the year of 1998 to 2005 by DEA. The productivity of the whole industry fell due to the falling of the technical change index. The analysis of the relationship of productivity and the economy growth and the essential factors of productivity indicates: the investment in fixed assets and productivity improvement are still important motivations of the economy development – although productivity progress may cause a negative effect on the economic growth in the short run, the positive effect is far above the negative effect one year later; pure labour investments are known to hamper the growth of the economy, but the productivity improvement and the fixed assets investment then converse such situation; the average fixed assets have a great meaning to the technical improvement in the short run. The increase of the foreign domestic investment (FDI) plays a negative effect on the technical change. So we suggest improvement in the quality of FDI.
International Journal of Enterprise Network Management – Inderscience Publishers
Published: Jan 1, 2008
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