Abstract：Using the stochastic frontier production function analysis and a firm-level panel data collected by the National Bureau of Statistics of China,this paper examines the frontier technological progress of China's large and medium-size industrial enterprises sector during 1995-2002.The major findings include:(1) The contribution to TFP growth by frontier technology progress reached as much as 14 percentage points a year on average;(2) The revolution of technological progress is driven by increased competition,globalization,foreign investment,and reform of enterprises' property rights;(3) By regressing technical progress index on the variables on institutional and management environments,this paper finds: state-owner,larger-size firms and competitions play vital roles in the technological progress.Thus this paper suggests that the only way to shift china's growth mode is to deepen ownership reform,strengthen capital market construction,and break the monopoly of sector,promote normal competition.
