Abstract: Based on a nonparametric Malmquist index approach, the Total Factor Productivity(TFP) trend in China's industry has been analyzed, which is decomposed into technical efficiency and technical progress. The results indicate that the average growth rate of Chinese industry is mainly due to the improvement of the technical progress, the decline of productive efficiency has affected the growth of TFP adversely. There are obvious different growth of TFP between east, centre, and west regions of China, the difference of technology development between regions is one of the important factors caused regional TFP divergence.

Key words: total factor productivity, Malmquist index, technical progress, technical efficiency