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Sustainability 2016, 8(11), 1166; doi:10.3390/su8111166

Productivity Growth-Accounting for Undesirable Outputs and Its Influencing Factors: The Case of China

1
School of Economics and Management, Beihang University, Beijing 100191, China
2
Experimental School, Beihang University, Beijing 100191, China
*
Author to whom correspondence should be addressed.
Academic Editor: Daniel A. Vallero
Received: 24 May 2016 / Revised: 28 October 2016 / Accepted: 1 November 2016 / Published: 11 November 2016
(This article belongs to the Special Issue Air Pollution Monitoring and Sustainable Development)
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Abstract

Presently, China’s social development is facing the dilemma of supporting economic growth and reducing emissions. Therefore, it is crucial to analyse productivity growth and examine its relationship with influencing factors in China. This study evaluated the total factor productivity (TFP) growth of 30 provinces in China by adopting the Malmquist-Luenberger (ML) productivity index and incorporating undesirable outputs from 2011–2014. Then, a Tobit regression model was employed to explore the factors that influence China’s TFP growth. The results show that the average annual growth of the Malmquist-Luenberger productivity index was lower than that of the traditional Malmquist (M) productivity index growth during the research period. The findings reveal several key conclusions: First, the true TFP growth in China will be overestimated if undesirable outputs are ignored. Second, technical changes are the main contributor to TFP growth. Third, there are huge regional disparities of productivity growth in China. Fourth, coal intensity, environmental regulations, and industrial structure have significantly negative effects on productivity growth, while real per capita gross domestic product (GDP) and foreign direct investment (FDI) have strongly positive effects on productivity growth. View Full-Text
Keywords: total factor productivity (TFP); Malmquist-Luenberger productivity index; undesirable outputs; Tobit Model total factor productivity (TFP); Malmquist-Luenberger productivity index; undesirable outputs; Tobit Model
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Zhang, J.; Fang, H.; Peng, B.; Wang, X.; Fang, S. Productivity Growth-Accounting for Undesirable Outputs and Its Influencing Factors: The Case of China. Sustainability 2016, 8, 1166.

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