Research on total factor productivity of Shanghai services and its influence factors

In many countries, the development of services is an important mark measuring a city modernization degree. In the process of international metropolis, Shanghai must speed up modern service industries so that it can deal with the globalization. Using the data envelopment analysis (DEA) Malmquist index method, this paper research the total factor productivity of the whole services of Shanghai and its seven important industries, and break down the TFP into technical efficiency changes and technical progress changes. The results of the study show that, the total factor productivity of Shanghai services overall steady growth. The main motivation of total factor productivity growth comes from technology efficiency improving, not from Technical progress. Total factor productivity growth of the seven important industries is not continue, some years even show negative growth. Finally, combined with the orientation of Shanghai as an international economic, financial, trade and shipping centers, this paper analyses the influence factors of total factor productivity. And put forward some policy proposal to the ascension of Shanghai services growth efficiency.