Research on the Evolutionary Characteristics and Influencing Factors of Total Factor Productivity in Wenzhou (2014–2023): A Dual Validation Based on the DEA–Malmquist Index and the Solow Residual Method_Vol. 3 No. 1 (JBM 2026)_Journal of Business and Marketing (ISSN: 3005-5717)

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Research on the Evolutionary Characteristics and Influencing Factors of Total Factor Productivity in Wenzhou (2014–2023): A Dual Validation Based on the DEA–Malmquist Index and the Solow Residual Method

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DOI: https://doi.org/10.62517/jbm.202609108

Author(s)

Chuting Lin, Weilun Huang*

Affiliation(s)

School of Finance and Trade, Wenzhou Business College, Zhejiang, China *Corresponding Author

Abstract

Total Factor Productivity (TFP) is a core indicator for measuring the quality of regional economic growth. Based on data from the Wenzhou Statistical Yearbook (2014–2023), this paper performs dynamic measurement and structural decomposition of Wenzhou’s TFP using the Solow Residual Method and the DEA-Malmquist Index. The findings reveal that Wenzhou’s TFP level declined over the decade, with an average annual decrease of 2.1%. Economic growth remains significantly dependent on the expansion of capital and labor scales, and an efficiency-driven transformation has yet to be fully realized. Results indicate that stagnant technological progress and deteriorating scale efficiency are the primary causes of the TFP decline, reflecting systemic bottlenecks in Wenzhou regarding translation, industrial structure optimization, and factor allocation. Although the decline has narrowed since 2021 due to digital transformation, the technological adaptability of small and medium-sized enterprises remains weak and the sustainability of efficiency improvements is insufficient. This paper reports that Wenzhou should increase R&D investment, accelerate industrial digitalization, optimize the market-based allocation of factors, and establish a system for talent attraction and cultivation to drive the transition from factor-driven to efficiency-driven economic growth.

Keywords

Total Factor Productivity (TFP); Wenzhou Economy; DEA-Malmquist; Technological Progress; Factor Allocation; High-quality Development

References

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