Abstract | Malmquist index, which is used as a non-parameter approach by many papers as now, mainly reflects the growth rate of Total Factor Productivity (TFP) itself. However, it is not identical to the contribution of TFP growth to economic growth, which is the main aim of growth accounting analysis. From the initial definition of economic growth, this paper develops a no-parameter framework which can be used to measure the contribution of TFP growth to economic growth. Using province level data, this paper measures the contribution of TFP growth to economic growth in China from 1952 to 2008. Several results are found. Firstly, China's GDP grew by nearly 80.5 times from 1952 to 2008, among which contribution of endowment input and TFP growth was about 62.0 times and 28.5 times respectively, the ratio of contribution of TFP was about 35.4 percent. Secondly, from 1952 to 1978, China's GDP grew by nearly 4.7 times, endowment input contributed about 5.4 times, and continuation of TFP growth was minus. Thirdly, China's GDP grew by nearly 17.1 times from 1978 to 2008, among which contribution of endowment input and TFP growth was about 10.7 times and 6.4 times respectively, the ratio of contribution of TFP was about 37.3 percent. Additionally, this paper pays attention to the difference between TFP growth and the contribution of TFP growth to economic growth. Malmquist index is appropriate for measuring TFP growth, and our framework for the contribution of TFP growth to economic growth. |