Looking back at the stage of rapid economic growth in China, total factor productivity (TFP), a comprehensive indicator of economic growth driver, has experienced three stages of changes: continuous growth from 2002 to 2007, a slight increase from 2008 to 2010, and almost stagnation since 2012. The report of the Nineteenth National Congress of CPC clearly pointed out that China's economy has shifted from a stage of high-speed growth to a stage of high-quality development. It is in the critical period of changing the development mode, optimizing the economic structure and changing the growth power. It is committed to promoting the quality, efficiency and driving force changes of economic development and improving total factor productivity.
By decomposing total factor productivity, its components can be summarized into three categories: demand side kinetic energy, supply side kinetic energy and structural transformation kinetic energy. On this basis, the economic growth kinetic energy index is constructed. The index can not only reveal the trend of China's economic growth momentum on the whole, but also put forward corresponding policy suggestions for different trends such as growth, stagnation and slowdown.
