A Study On The Total Factor Productivity Of Enterprises With Backward Production Capacity

Industrial development has always played an important role in the process of China's economic development from extensive to intensive.The relatively backward mode of resource allocation and enterprise system formed under the traditional economic system of our country have resulted in backward productivity in some industries with lower technological level than the average level of the industry or with high energy consumption and pollution.Eliminating backward production capacity has become an urgent problem for China's industrial development and economic and social development.Since the early 1980 s,China has introduced a series of policies and measures to eliminate backward production capacity and implemented them one by one.With the parallel development of market economy and national policies,China has made remarkable achievements in adjusting the structure of backward industries,realizing energy saving and emission reduction,and restraining duplicate construction.Total factor productivity(TFP)is an important concept in the field of economic growth,a key indicator of efficiency,and an important tool for decision makers.It comprehensively reflects the important role of technological progress in the economic development of a country or region,and also highlights the degree of efforts made by a country or region to develop its economy.The evaluation of the implementation effect of the policy of eliminating backward production capacity is an important practical issue in the transformation and upgrading of China's industrial structure and economic development.From the point of view of micro-enterprises,using the data of Chinese industrial enterprises over the scale of 2003-2013,this paper matches the backward productive industries and enterprises published by the state.Using the semi-parametric method of OP(Olley and Pakes)and LP(Levinsohn and Petrin),this paper calculates the total factor productivity of backward productive enterprises in China,and calculates the total factor productivity of different industries separately.Productivity is to examine the effectiveness of implementing the policy of eliminating backward production capacity.Firstly,the basic data of this paper are from the database of China's industrial enterprises from 2003 to 2013.Since 1999,the state has issued three catalogues on eliminating backward production capacity,involving many industries including steel,non-ferrous,light industry and textile.For some industries,the catalogue may be just a few small modules,and it is too old to guarantee that all industries involved in the catalogue can be calculated without omission.Therefore,this paper takes the 19 industries with backward production capacity announced by the Ministry of Industry and Information Technology in 2012 as a typical example.Excluding the industry of calcium carbide,citric acid and lead-acid battery,which has no specific four-digit code in the Classification and Code of National Economic Industries,the data of the remaining 16 industries were screened and processed.Collect the catalogue of enterprises with backward production capacity published by the state from 2003 to 2013.In the years without catalogue,according to the statistical yearbook of various industries and annual memoirs,statistics are made on whether the industry is listed in the backward production capacity industry,and then matched with the enterprises in the database.Secondly,when estimating total factor productivity,there are two endogenous problems when using C-D production function(Cobb-Douglas,Cobb-Douglas production function)and OLS estimation(Ordinary Least Square,ordinary least squares method).Although the methods of OLS and FE(Fixed Effect Estimation)take into account the endogenous nature of the model,they do not solve the problem of how to deal with the selective bias in the model.The least squares estimation using FE estimation method uses panel data.A large amount of information in the data will be discarded and can only consider cross-individual changes.OP semi-parametric method can solve the above problems.This method assumes that enterprises make investment decisions according to the current productivity situation of enterprises,and use the current investment of enterprises as the proxy variable of non-observable productivity shocks,thus solving the problem of simultaneous deviation and reflecting the information brought by time changes.But not every enterprise has positive investment every year,and enterprises with zero investment will not be estimated.LP proposes to use intermediate inputs as proxy variables to solve this problem,and the data is easier to obtain.After comparing various methods of calculating total factor productivity,this paper uses OP semi-parametric method to calculate the total factor productivity of backward productivity enterprises in China,and calculates the total factor productivity of different industries separately.The results calculated by OP semi-parametric method are used as the benchmark analysis,and the robustness of the results calculated by LP method is discussed appropriately.It is found that from 2003 to 2013,the annual dynamic change of total factor productivity(TFP)of China's backward production enterprises as a whole shows an upward trend,from 6.12 in 2003 to 8.15 in 2013.The average total factor productivity of backward productivity industries,especially coke,cement and ferroalloy industries,is greater than 7.The possible reason is that there are not only backward productivity enterprises with backward technology and equipment or serious environmental pollution,but also a large number of high-quality enterprises with advanced technology and high production efficiency in these backward productivity industries.Finally,through theoretical analysis,model design and empirical test,this paper finds three main findings: first,the total factor productivity of backward productivity enterprises is significantly lower than that of non-backward productivity enterprises;second,the total factor productivity of backward productivity industries is significantly lower than that of non-backward productivity industries;third,compared with non-state-owned enterprises,the state-owned backward property The total factor productivity of energy enterprises is generally high.The findings of this study provide empirical evidence for the implementation effect of the government's policy of eliminating backward production capacity.It shows that the policy of eliminating backward production capacity enterprises in a focused and planned way has significantly improved the total factor productivity of industries and enterprises as a whole,promoted the transformation and upgrading of local industries,and has a good practical feasibility of eliminating backward production capacity policies.In addition,this paper finds that compared with non-state-owned enterprises,state-owned backward property.