Research On The Impact Of Resources Misallocation In China's Manufacturing Industry

Misallocation of resources is one of the important reason that restrict the increase of total factor productivity in China's manufacturing industry at current stage,which providing a entry point for finding a new driving force for the development of China's manufacturing industry.Hsieh&Klenow's(2009)resources misallocation theory holds that,when there are resources misallocation in the market,some companies occupy more production factors at a lower price,the production factors of other companies decrease accordingly.The increase in output of enterprises that account for more factors of production,and the decline in output of enterprises with reduced factors.Under the assumption of convex production technology,the increase in factor input leading to the rise in output cannot fully compensate the reduction of output due to reduction of factors,so the total output suffers losses and the total production efficiency drops.Hsieh&Klenow's(2009)research focuses on the impact of resources misallocation to the micro-enterprises,and does not delve into the transmission mechanism of resources misallocation impacts on macro-industries.This paper draws on Syrquin's(1986)research on the decomposition of total factor productivity,and analyzes the impact of resource mismatch on the total factor productivity of macro-industries in depth.From a macro perspective,we have constructed the impact mechanism of "resources misallocation--technological innovation,industrial structure--total factor productivity".At the same time,most of the related studies regard resources misallocation as a factor that is independent of the evolution of the company itself,which is inconsistent with the reality.This paper combined R&D and growth models with resources misallocation studies.Through the analysis of resources misallocation and technological advances,it is found that resources misallocation is not an independent factor,and resources misallocation has a significant impact on technological progress.We have supplemented the existing research from the above two aspects in order to make the resources misallocation theory more realistic and guiding.The first chapter is "A theoretical analysis of the resources misallocation on China's manufacturing industry." This chapter is the basis of the full text research.The first section analyzes the impact of resources misallocation on full-factors,starting from the resource distortions proposed by Hsieh&Klenow(2009),and analyzing the impact mechanism of resources misallocation of TFP.First,establishing two industry models,set up industries with resources misallocation,and industries without resources misallocation,and visually present the economic impact of resource misalignment through comparative analysis.The analysis finds that the marginal output of industry elements with resources misallocation deviates from the effective allocation of resources,and this deviation detracts from the overall total factor productivity.Through numerical simulation analysis,it is found that industry resources misallocation have a significant negative impact on the industry's total factor productivity.Improving the misallocation of resources will increase the total factor productivity;with the developing of industry,the higher the level of total factor productivity of the industry,the greater the negative impact of resources misallocation;the negative impact of misallocation of industry resources with higher total factor productivity is more pronounced.After that,the two industry models were extended to multiple industries and broke the Hsieh&Klenow's(2009)assumption that scale returns are unchanged.In the case of uncertain scale returns,the impact of resource misallocation remains significant,demonstrating that whether in developed or developing countries,whether in areas with high production efficiency or low productivity,the impact of resources misallocation is always huge,and resources misallocation needs attention.The second section analyzes the impact of resources misallocation on the industrial structure.It mainly analyzes the impact mechanism of resources misallocation resulting decline in total output and leading to changes in the industrial structure.Section 3,"The impact of resources misallocation on technological innovation" is the expansion of the research framework of Hsieh&Klenow(2009).It combines organically the R&D and growth models with resources misallocation and established a framework for the analysis of resources misallocation between two sectors including R&D and production.Clarified the impact of resources misallocation on the technological innovation.The first chapter will deepen the research level from the enterprise to the internal,and explore the impact of resources misallocation on TFP to further deepen the impact on the sources of total factor productivity-resource redeployment and technological progress.Combined with the analysis of industrial structure and technological innovation,the analysis clarifies the influence mechanism of "resources misallocation--technological innovation,industrial structure-total factor productivity".The second chapter "Resources misallocation and total factor productivity in manufacturing" is an empirical verification of the theoretical analysis in the first section of the first chapter.The purpose is to clarify the impact extent of resources misallocation on the total factor productivity of manufacturing.The first section analyzed the typical facts of the resources misallocation of manufacturing in China.Through sorting out resources misallocation such as industry development gaps,regional resource allocation gaps,resource allocation gaps among different ownership enterprises,"labor shortage" and "asset shortage",the analysis shows that many issues arising from the development of the manufacturing industry are closely related to the misallocation of resources.The second section draws on the research of other scholars and selects the variance of the marginal output value as an index to measure the resources misallocation.According to the model in the first section of the first chapter,the method for determining the misallocation of resources is selected.Through the analysis of the measurement results,it is found that there is a slight improvement in the misallocation of industry resources,the improvement of regional capital misallocation is unobvious,and the regional labor misallocation is significantly improved.According to the analysis,the improvement of resources misallocation is due to the sluggish world economic situation and the impact of changes in the domestic development phase.The overall decline in resource allocation efficiency has led to a narrowing of the gap in resource allocation efficiency between the industry and the region.Improvement is not entirely due to the optimization of resource allocation methods.Based on the model derivation in the first section of the first chapter,the third section clarifies the impact extent of resources misallocation on the total factor productivity of the manufacturing industry.From the perspective of industry,improvement of resources misallocation from 2000 to 2015 promoted the growth of total factor productivity in manufacturing by approximately 15.8%,with an average annual increase of 0.99%.A rough estimate of 25.8%of total factor productivity growth in manufacturing comes from the improvement of resources misallocation.From a regional perspective,the improvement of misallocation of resources promoted a 6.58%growth in total factor productivity in manufacturing industry,with a contribution rate of 10.73%.It can be seen that the resources misallocation has a greater impact on total factor productivity of manufacturing,improving resources misallocation is a new driving force for the growth of total factor productivity in manufacturing.The third chapter "Resources misallocation and changes in the structure of manufacturing industry" is an empirical verification of the theoretical analysis of the second section of the first chapter.The first section analyzes the current situation of structural changes in China's manufacturing industry from the point of view of the rationalization of the manufacturing structure and the heightening of the structure.The analysis finds that the rationalization of the structure of the manufacturing industry in China has been improved,but the volatility is greater,and the rationalization index is affected by the economic fluctuations.Indicating that China's manufacturing industry has not achieved effective allocation of resources;the heightening of the structure is less volatile and showing a rising trend,but the regional gap in the heightening of manufacturing structure is high,and the development of high-end technology manufacturing in the central and western regions is poor and volatile,regional development is not coordinated.In the second section,a regression model was constructed based on the model derivation in Chapter 2,Section 2.Based on the rationalization and heightened measures of manufacturing structure,regression models with different levels were constructed.Construct a regression model at the industry level,using the manufacturing sector to divide the industry data into different regions,and carry out a regression analysis of the heightened manufacturing structure.Construct a regression model at the regional level,use regional manufacturing data to distinguish regions,and conduct a regression analysis of the rationalization of the manufacturing structure.The third section empirically analyzes the degree of influence of resources misallocation on the rationalization and heightening of the manufacturing structure.The analysis found that:First,resources misallocation inhibits the structural optimization of the manufacturing industry.Misallocation of resources reduces the output of high-end technology manufacturing industries.When there are different degrees of resources misallocation in the industry,it will lead to uncoordinated industry development.Therefore,resources misallocation also restrains the rationality and heightening of the manufacturing structure.Second,the impact of resources misallocation on the manufacturing structure is regionally different.The capital misallocation has a greater negative effect on structural elevation in the eastern and central regions,and has no significant impact on the western region.The capital misallocation has a greater impact on the rationalization of the manufacturing structure in the central region,and the influence of labor misallocation on the rationalization of the western manufacturing structure is greater.Different influences indicate that the improvement of resources misallocation should be based on local characteristics in order to promoting the efficiency of resource allocation better.The fourth chapter "Resources misallocation and manufacturing technology innovation"is an empirical verification of the theoretical analysis of the third section of the first chapter.The first section analyzes the status quo of technological innovation at the level of China's manufacturing industry.Through a comprehensive analysis of technological innovation investment,innovation achievements,and innovation environment,it is found that the technological innovation capability of China's manufacturing industry has improved significantly,but there is still innovation resources misallocation.The departments with low innovation occupies more innovation resources,and the gap in technological innovation capability between different industries is gradually widening,which restricts the improvement of overall technological innovation capability.In the second section,starting from the main driving forces of technological innovation,independent innovation and technological spillover,the third chapter of the first chapter expands the theoretical model to introduce foreign capital,and analyzes the impact of resources misallocation on manufacturing technology innovation in the presence of technological spillovers.After the theoretical model established a regression model.The third section draws on the relevant research of enterprises' technological innovation capabilities and establishes an evaluation system for the technological innovation capabilities of the manufacturing industry to fully reflect the technological innovation capabilities of the manufacturing industry.In the fourth quarter,the manufacturing technology innovation capability was first measured according to the evaluation system for the technological innovation capability of the manufacturing industry.The analysis found that the technological innovation capability of the manufacturing industry in China has generally risen.This is in line with the analysis in the first section.Through regression analysis,it is found that the impact of resources misallocation on technical innovation is significantly negative,which verifies the correctness of the previous theoretical analysis.The effect of labor misallocation is greater than capital misallocation,indicating that the increase in labor costs at the present stage is an important factor that restricts China's manufacturing technology innovation and improves labor misallocation can ease the pressure of rising labor costs;the impact of capital misallocation is less than labor misallocation,but it still has a large negative impact.Improving capital misallocations can help ease corporate financing difficulties;improving resources misallocation can help to release the margin profit of enterprises and increase the willingness of enterprises to carry out innovation activities,and also promote the improvement of manufacturing technology innovation capabilities.The fifth chapter "Influencing factors of manufacturing resources misallocation"discusses the causes and influencing factors of manufacturing resources misallocation based on the previous analysis.This chapter analyzes the causes of the resources misallocation of manufacturing in China from the perspective of government behavior(administrative monopoly,local protection,and government regulation)and market behavior(industry agglomeration,export trade,and financial market frictions),and discussed the mechanism of these factors impact on resource allocation.Afterwards,measuring each factor.Finally,through regression analysis,empirical analysis of the impact of various factors on manufacturing resources misallocation and influence degree.The analysis finds that both government actions and market actions have promoted the improvement of resources misallocation of manufacturing,government actions have played a leading role,and the reform dividend released by the transformation of government functions has promoted the efficiency of the resources allocation of manufacturing.The market behavior is subject to a high level of government intervention.Through the development of industrial clusters and the reduction of financial market friction,the misallocation of resources can be effectively improved.The imperfection of the factor market adds a bit of uncertainty to the efficiency of resource allocation.A more stable and autonomous market mechanism is the guarantee for improving the resources misallocation of manufacturing industry.