Research On The Efficiency Of Factor Allocation Of Economic Structure

The economy in China faced indep transition.Under background of structural slowdown and adjustment,the improvement of productive factor allocation effectiveness became essential to the future China's economic growth.For quite a long time,the structural ideas of developmentism could not match with the gross output view.This paper aims to link structural factor allocations and gross output growth,based on wedge decomposition general equilibrium model,by including intermediate goods prices wedge,capital price wedge,several labor price wedges and computing the effects of wedges on gross outputs.The gross macroeconomic model,ususally assuming the optimal of resource allocation,ignored the special structural characteristics led by national industrial policies.In fact,on purpose of national aims and development strategies,both United states,european countries and Japan have longtime excuted national industrial policies,and resulted in somewhat factors prices wedges among industries.While the former structural theory,always focus on specified sectors and the networks,neglecting the overall effects of structures on gross output.As for China,the market oriented reforms began from the planned economic system.The fastly changing economic structure one hand was led by the factor changing,on the other hand,was deeply influenced by national industry policies,ownership structure and historical problems.Thus,China has its own special economic structural misallocation and improvement pattern.This made it important to analyze the economic structure by way of optimization of resources allocation.Based on input-output structure,this paper first caculated intermediate price wedge,capital wedge,high skill,middle skill,low skill labor price wedges and their influences on gross output,then decomposed efficiency improvement item and non-efficiency item.Then by introducing intermediate goods elasticity,the squezzing effect between industries can be analyzed.By using world input-output tables,the model finally estimated the international trade effects on misallocation eliminating.From the results of counterfactual estimation,the misallocation eliminating in Chinese manufacture will not improve the output efficiency in a close economy,while industries like finance,research,IT could largely grow output.In agriculture,retailing,and other service(mainly low value-added service),labor crowded,leading to uneffectiveness.Meanwhile the high price misallocation in production related services squeezed the production level of manufacturing.When under international background,Chinese manufacture will get international benefits by cutting price wedges.Their non-tradable upstream industries can benefit the gross output by international trade effect.In process of network enhancing among industries,some service industries appeared to be over input-output structures.They ususally has little relations on networks,but will largly influence the productive factors.This paper also discussed these kinds of industries.Finally,this paper gave policy recommendations on Chinese future economic growth and efficiency improvement,as well as detailed industries policies adjustments.