Research On The Impact Of China's Marketization Degree On Industrial Total Factor Productivity

Since the reform and opening up in 1978,China has played an increasingly important role in the global economy,and its international status has further improved.The transformation of the economic growth model is also urgently needed,from the traditional extensive,investment-driven economic growth model to the intensive,innovation-driven growth model.The report of the 19 th National Congress of the CPC emphasized that China's economy is at a critical stage of high-quality development.Among them,improving total factor productivity(TFP for short)is an important content in the construction of a modern economic system.The comprehensive effect of technological progress on economic development is the essence of total factor productivity.At the same time,total factor productivity can reflect the efficiency of economic operations to a certain extent.Therefore,how to improve total factor productivity during the transformation of China's economic growth model is of great significance.On the other hand,a large number of institutional economics studies have shown that marketization can improve the efficiency of economic operations.Based on the above theory,this paper explores the relationship between China's degree of marketization and industrial total factor productivity.This article first starts with a literature review of marketization and total factor productivity.It sorts out the research results and related theories of marketization and total factor productivity by many experts and scholars at home and abroad in recent years and analyzes the impact mechanism between the two.The marketization indicator system was evaluated and analyzed the time and space evolution of the degree of marketization.It was found that the overall degree of marketization in China showed an upward trend from 2008 to 2016,and the difference in regional marketization degree was higher in the eastern region than in the central and eastern regions.The western region,the Pearl River Delta and the Yangtze River Delta region are higher than the western region.Then,the DEA-Malmquist method was used to calculate the industrial total factor productivity in 30 regions of China,and the total factor productivity was decomposed from the aspects of allocation efficiency and technological progress.Next,a panel model of 30 provinces,municipalities,and autonomous regions in China from 2008 to 2016 was used to estimate the impact of China's degree of marketization on industrial total factor productivity and its decomposition terms.Then divide the 30 regions into three regions: east,middle andwest,and use the threshold model to classify the degree of marketization.We find that the development of marketization affects the industrial total factor productivity in various regions to varying degrees.Finally,based on the analysis of this paper and the results of empirical analysis,the suggestions proposed in this paper include: standardizing government functions,creating an effective industrial market competition environment,coordinated development of regional industrial economy,and guiding the development of industrial factor markets.