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Productivity Changes and Heterogeneity in China's Service Sub-industry
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TitleProductivity Changes and Heterogeneity in China's Service Sub-industry  
AuthorWang Shuli and Hu Zongbiao  
OrganizationSchool of Economics, Wuhan University of Technology; 
Key WordsChina’s Service Industry; Productivity Changes; Industry Heterogeneity 
AbstractUsing the revised data by National Bureau of Statistics according to the first and second economic census and the method of DEA-Malmquist Productivity Index, this paper measures the total factor productivity (TFP) and its decompositions in China's service industries from 1990 to 2010. The results show that the service TFP in overall level and sub-industry level are all rising, and the turning point appears in 2002 before which the dominant factor leading to TFP growth is technical efficiency improvements, while technical progress becomes the dominant factor after 2002. Meanwhile, the heterogeneous phenomenon exists in China's service TFP growth, and the growth rate of service TFP is lagging behind that of industries. From 1991 to 2010, the inter-industry heterogeneity of technical efficiency and TFP has declined, while technological progress is widening. Possible mechanisms are the heterogeneous effects of modern information technology on the resource allocation of different service firms and the gradual road of service industries’ institutional reform in China. 
Serial NumberWP156 
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