Re-measurement and Influence Factors of Total Factor Productivity in China’s Service Industry

This paper uses the semi-parametric OP method (Olley and Pakes, 1996) to measure the total factor productivity of the service industry in China from 2007 to 2016. The study found that in the sub-sectors of the service industry, the degree of technological progress of seven industries, including real estate and finance, is higher than that of public management and social organizations, as well as health, social security and social welfare industries intuitively. In the sub-regions, the degree of technological progress of Beijing, Shanghai, Zhejiang, Guangdong and other places is significantly higher than that of the central and western provinces and cities. From the perspective of growth trends, there are different increases and decreases between different industries within the service industry. However, since 2007, the total factor productivity of China’s service industry has shown a significant increase. Although some industries have shortcomings in technological progress, these gaps are shrinking significantly in terms of development trends.Among the four major economic regions, in addition to the downward trend in the western region, the total factor productivity of the service industry in the eastern, central and northeastern regions of China has increased significantly. From the perspective of influencing factors, the level of service industry development, urbanization rate, trade dependence and birth rate are all important variables to promote the growth of total factor productivity in the service industry.