Analysis to the Reform Process Effectiveness of Chinese High-speed Railway Industry Based on the Total Factor Productivity

Abstract

This paper selects the Total Factor Productivity (TFP) as the comprehensive index reflecting the productivity change in the railway industry. Using the Solow residual method with the characteristics of the China railway, we construct the estimated econometric model of productivity to study the TFP of the railway passenger transportation industry over the past decade and the High-speed railway (HSR) in the next period of time. By analyzing the trend and cause of the TFP change briefly, some policy recommendations are proposed for the HSR’s sustainable development. The results show that comparing with the general railway, the technological advantages of the HSR is prominent.