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Academic Journal of Business & Management, 2024, 6(1); doi: 10.25236/AJBM.2024.060121.

The relationship between industrial structure upgrading, rationalization and total factor productivity


Li Sui

Corresponding Author:
Li Sui

Institute of Economics, Guangdong University of Finance and Economics, Guangzhou, China


Using the panel data of 31 provinces from 2000 to 2020, this paper first calculates the total factor productivity using LP method, and then calculates the industrial structure upgrading index and industrial structure rationalization index. The relationship between rationality of industrial structure, multilevel of industrial structure and total factor productivity is studied by using the vector autoregressive model. Finally, it is found that there is a two-way relationship between the upgrading of industrial structure, rationalization of industrial structure and total factor productivity. The upgrading of industrial structure and rationalization of industrial structure can promote the growth of TFP to some extent, but the upgrading of industrial structure that is too advanced is not conducive to the improvement of enterprise TFP and the coordination and development of industries.


Industrial structure rationalization; Advanced industrial structure; Total factor productivity

Cite This Paper

Li Sui. The relationship between industrial structure upgrading, rationalization and total factor productivity. Academic Journal of Business & Management (2024) Vol. 6, Issue 1: 148-152. https://doi.org/10.25236/AJBM.2024.060121.


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