Empirical Analysis on Contribution Rate of Factors of Production on China Oil and Gas Industry - Based on Provincial Panel Data

摘要

The foreign cooperation of China’s offshore oil and gas industry has gone through forty years. The introduction of technology and FDI (foreign direct investment) has become a decisive factor for the development of China’s oil and gas industry. This paper, using the data in 2000~2015 from the 19 major oil and gas producing provinces throughout China, a panel model of output elasticity and contribution rate for the factors on production of oil and gas industry is established based on the improved Cobb-Douglas production function and the Solow residual method. The research results show that the output elasticity of FDI is 0.3708, the output elasticity of total fixed assets is 0.0679, the output elasticity of annual fixed assets investment is 0.0259, and the output elasticity of labor force is 0.0792. The results of the panel model analysis also show that one-year lag has a significant influence on the oil and gas production, and the marginal influence is 0.3876. According to the output elasticity of factors and using the macro data from oil and gas industry in China, we calculate out the contribution rate of each factor on output. The factors can be ranked as follows in term of their contribution to output: the technological progress (0.69), the FDI (0.18), the total fixed assets (0.09), the annual fixed assets investment (0.03) and the labor force (0.002). In the end, we give out some policy advices about increasing the technology investment, accelerating the technological innovation and strengthening the intensity of FDI attraction for China’s oil and gas industry.