Generally speaking, economic growth can be decomposed into the increase of labor input, the accumulation of capital and the growth of total factor productivity. Among them, the accumulation of labor and capital mainly reflects factor input, while total factor productivity represents the part of economic growth that cannot be explained by factor input such as labor and capital, reflecting technological progress or efficiency improvement. Total factor productivity is mainly determined by two aspects: the speed of technological progress and the efficiency of resource allocation. The Chinese deepen supply-side structural reforms, focus on improving the quality and efficiency of the supply system, and increase the momentum for sustained economic growth, which can effectively increase the contribution of total factor productivity to economic growth.
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