An Empirical Analysis of the Effect of Total Factor Productivity on Manufacturing Performance

As the basic industry of national economy, manufacturing industry plays an important role in promoting China's economic development. In this paper, the total factor productivity of the manufacturing sector is calculated based on the statistics of 16 industrial sectors from 2002 to 2015. It is found that the manufacturing efficiency of our country decreased in 2002-2015. Among them, petroleum processing, coking and nuclear fuel industry fluctuate the most. From 2002 to 2015, the total factor productivity of every industry in the manufacturing industry experienced the trend of declining and then recovering, and the overall trend was declining. As for arts and crafts and other manufacturing industries, the total factor productivity of each year has experienced a trend of rising and then falling slightly, and the overall trend is on the rise. Overall, total factor productivity in all sectors of the manufacturing sector has declined. Therefore, it is necessary to improve the efficiency of resource utilization, improve inter-industry resource allocation and improve total factor productivity, so as to maintain a strong competitive advantage.