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The Disparity and Convergence of TFP Change in China’s Service Industry
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TitleThe Disparity and Convergence of TFP Change in China’s Service Industry  
AuthorWang Shuli,Teng Zewei and Liu Jun  
OrganizationWuhan University of Technology; Shanxi University of Finance and Economics;; 
Key WordsProductivity of Service Industry; convergence; Absolute convergence; Conditional convergence; Comparative Analysis 
AbstractBased on the provincial panel data from 2000-2012 and industry panel data from 2004-2012, the paper measures the TFP growth of service industry for China’s 31 provinces and services sub-sector industry by using nonparametricDEA-Malmquist productivity index method, and does a comparative analysis to the regional and industry disparity of TFP change. Then, we applied convergence theory to study the convergence of China’s service TFP change from the perspectives of regional and industry disparity. The result shows that the TFP growth of China’s service industry possessed greater heterogeneity of the regional and industry, and the regional change of service TFP growth was less than the industry change. The TFP growth in services mainly derives from technological progress, thus there still is a lot technical efficiency can do to improve the service growth. The convergence results indicated that convergence does not exist in the regional disparity of service TFP growth, but in the industry disparity. Only the east region has absolute convergence, and the speed of convergence was significantly smaller than the industry absolute convergence, while the gap of the TFP regional disparity in other areas was widening. All areas show significantly conditional convergence except for the middle region. The speed of the industry conditional convergence was smaller than the regional conditional convergence of east region, but bigger than that of west region. The service industries will tend to convergence their steady-state levels.  
Serial NumberWP776 
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