The Quadruplicity Decomposed of Labor Productivity Based on DEA

Based on frontier production surface of DEA, authors decompose index of labor productivity into technical efficiency, pure technical progress, scale efficiency of capital/labor and change of intensity for capital/labor, and analyses the economic meanings of the four indexes. Then the papers propose the effect of the four indexes to provincial industrial labor productivity during 2006 and 2007 in China. We get some results: (1) the improvement of industrial labor productivity mainly came from technical progress and capital deepening, (2) most of province have lied in the state of decreasing returns to scale efficiency of capital/labor.