An Analysis of Total Factor Productivity of China Airlines Based on Malmquist Index

The Malmquist index of total factor productivity is applied to a sample of five main China airlines over the period 2002-2006.Results show that the average TFP increasing rate of China airline is 1.2%.This increasing both came from the improvement of efficiency and the progress of technology.To enhance China airlines productivity,we need pay further attention to technology progress and think much of efficiency improvement at the same time.The increase of total factor productivity is limited if we emphasize one side only.