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Analysis on Technical Progress Contribution to the Development of Dairy in China

At present, the development of China's dairy industry is an important stage. On the one hand, foreign companies speed up the penetration of Chinese dairy industry; on the other hand, domestic dairy enterprises competed fiercely. It is necessary to objectively measure the contribution of various production factors and technical progress in dairy industry to development in order to achieve a better resources allocation. The paper, using 1994-2008 data of China's dairy industry, constructs dairy growth model which references the basic idea of Solow model including technical Progress factor. The results show that the technical progress contribution rate of China's dairy industry is 51.01% on average, which surpasses the contribution rate of capital and labor these two factors. The author also further compares China's dairy industry contribution rate of technical progress before and after China entering WTO. Finally, author conducts an economic analysis on results, in the development process of dairy industry, the technical progress plays a major role; while production factors have been a transfer phenomenon in dairy industry cycle.