Research on the Impact of Chinese Total Factor Productivity on the Modern Economic System Based on the Spatial Dubin Model

Abstract

Total factor productivity is not only the core of high-quality economic development but also a core indicator for measuring the quality of economic development. Improving total factor productivity is one of the most critical points in building a modern economic system. Firstly, this paper uses the DEA-Malmquist index method to measure and decompose the total factor productivity of China’s 30 provinces, municipalities, and autonomous regions from 2001 to 2017 and analyzes the characteristics of its temporal and spatial changes. From a spatial perspective, the regional gap is relatively large. Secondly, we construct the index system of five dimensions and use this index system to comprehensively evaluate the improvement degree of China’s modernized economic system. The results show that the overall level of the improvement degree of China’s modernized economic system is relatively low, and the differences between provinces are great. Thirdly, this paper uses static and dynamic spatial econometric models to empirically analyze the effect of total factor productivity on the improvement degree of the modern economic system. The results show that the improvement degree of the modern economic system in China has obvious characteristics of time spillover and space spillover. Finally, we put forward countermeasures and suggestions on how to perfect the modern economic system.