Change of total factor efficiency of financial service industry in China

Abstract

Based on the non-parametric DEA and Malmquist index, this paper studies total factor efficiency of fifteen cities' financial service industry (FSI) in China during the year of 2000 to 2006. According to study objective, total factor productivity (TFP), as well as factors' degree of contribution, is analyzed. Eventually, the conclusion is obtained that the increase in TFP of China's financial service industry depends on both improvement of technical progress and technical efficiency.