Government Subsidies And Total Factor Productivity Of Chinese Industrial Enterprises

The manufacturing industry is the foundation of rejuvenating the country and the foundation of building a country,and plays a very important role in the national economy.China's manufactured products have a large market because of low prices,making China a big manufacturing country rather than a strong manufacturing country.At present,China's manufacturing industry has problems such as lack of core technology,and "Industry 4.0" with intelligent manufacturing as its core has begun to be deployed.Events such as Huawei's limited sales and 5G standard competition have attracted much attention,so the development of intelligent manufacturing has become an urgent need for China's economic transformation.The development of a new generation of information technology manufacturing is the key to the development of intelligent manufacturing.At present,the United States is still the largest technology market,occupying a dominant position in core technology,and the development of China's new generation of information technology industry is immature,with problems such as improper resource allocation and insufficient innovation drive.TFP is the main indicator for examining the productivity and technological progress of enterprises,and it reflects the performance level of enterprises to a certain extent.Government subsidies can improve the TFP level of enterprises through technological changes and financing constraints.Although government subsidies are an effective way to improve corporate performance,it remains to be discussed whether government subsidies have achieved the expected results.Excessive government subsidies may lead to enterprises' "seeking subsidies" behavior,and even generate dependence on subsidies,thereby lowering the TFP level of enterprises.Therefore,studying the impact of government subsidies on enterprise TFP is of great significance to the development of a new generation of information technology manufacturing.This article focuses on the China Industrial Enterprise Database 2.0,and identifies manufacturing enterprises that belong to the new generation of information technology industry based on documents such as the Strategic Emerging Industries Classification(2018)and the National Economic Industry Classification and Code(2017).Panel data in 2007,a total of 2141 samples.First of all,the motivation,mechanism and problems of government subsidies are analyzed through literature research.Secondly,the LP method is used to estimate TFP.The TFP estimation results show that the TFP average value of the new generation information technologymanufacturing industry is 6.987,the standard deviation is 1.180,the TFP value is relatively high,and the fluctuation is small.Finally,the dose response function of government subsidy and TFP is estimated based on the generalized propensity score matching.The main conclusions of the article show that:(1)The enterprises receiving government subsidies account for about 20% of the total.The enterprises receiving government subsidies have higher TFP values than those without government subsidies.(2)Enterprises that receive government subsidies China has about 20% of the total.The average value of subsidy income of state-owned enterprises is higher than that of non-state-owned enterprises.(3)Government subsidies are more focused on state-owned enterprises and enterprises in the central and western regions.At the same time,the smaller the size of the enterprise,the earlier the establishment year,and the higher the subsidy for higher asset profitability.(4)As far as the dose response function is concerned,most of its shapes show an inverted “U” trend,and some years have an “N” trend.The treatment effect at the first inflection point of the dose response function is negative,and the quantile corresponding to the first inflection point is generally 60% quantile.In addition,this article puts forward the following suggestions based on the research content: optimize subsidies and methods,strengthen supervision and management of enterprises,strengthen the inspection of government subsidies,and improve the efficiency of resource allocation of state-owned enterprises.