Journal of Northeastern University Natural Science ›› 2015, Vol. 36 ›› Issue (3): 448-452.DOI: 10.12068/j.issn.1005-3026.2015.03.032

• Management Science • Previous Articles     Next Articles

New Method for Total Factor Productivity Analysis: Fre-Primont Index

HUANG Yi1, SUN Guang-sheng1, HUANG Jin-zhi2   

  1. 1. School of Business & Administration, Northeastern University, Shenyang 110819, China; 2. School of Economics and Management, Harbin Engineering University, Harbin 150001, China.
  • Received:2014-01-15 Revised:2014-01-15 Online:2015-03-15 Published:2014-11-07
  • Contact: HUANG Yi
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Abstract: To overcome the shortcomings of Malmquist index, Fre-Primont index was introduced on the basis of the total factor productivity definition. The properties and decomposition of total factor productivity were also discussed. Firstly, Fre-Primont index was developed with distance function as the aggregate function, and this index also exhibited multiplicative completeness and satisfied transitivity test. Then, with the economic connotations of related efficiencies, Fre-Primont index was decomposed into the product of technology progress, technical efficiency change, scale efficiency change and residual mix efficiency change completely. Finally, the total factor productivities of 29 provinces in China from 2001 to 2010 were studied empirically by using Fre-Primont index.

Key words: total factor productivity, aggregate function, technical efficiency, scale efficiency, residual mix efficiency

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