Research On The Impact Of Financing Ownership Difference On Economic Growth From The Perspective Of Factor Allocation

In the past 40 years of reform and opening up,China's economic development achievements have shown obvious Chinese characteristics.China's economic development has a distinct feature of factor re-allocation based on the transformation of dual economic structure.The re-allocation of production factors from low-efficiency departments to high-efficiency departments leads to China's rapid growth.The economy has experienced rapid growth in the past 40 years,in which a large number of labor forces have first shifted from rural areas to cities,and then from the state-owned sector of cities in China to the private sector.Capital factor has been gradually re-allocated from state-owned enterprises to private enterprises.The re-allocation of factors has contributed to the rapid growth of the economy..Since 2011,China's economic growth has been slowing down and China's economic development has entered a new stage.The new stage of China's economic development has determined that the mode of economic development should shift from scale-type extensive growth to quality-efficient intensive growth,while the TFP(total factor productivity)improvement is the key to achieve sustainable growth of China's economy.The improvement of TFP depends not only on the improvement of production efficiency of individuals,but also on the efficiency of factor allocation among individuals in the economic system.It can be seen that promoting a new round of re-allocation of production factors and promoting the efficiency of factor allocation will be an important source of achieving sustainable growth for China's economy.The reform of the factor market is an endogenous need for China's economic development.In fact,the current Chinese enterprise sector still faces obvious difference in ownership.New credit is still flowing to state-owned enterprises.Private enterprises and small or medium-sizedenterprises are facing difficulties in financing.The central bank announced that since2014 the proportion of new loans to private enterprises has been declining year by year,from more than 60% in 2013 to less than 20% in 2016,while state-owned enterprises have risen from around 30% to around 80%.At the end of October 2018,the Politburo meeting of the Central Committee of the Communist Party of China stressed that "to study and solve the difficulties encountered in the development of private enterprises and small or medium-sized enterprises." The private enterprise symposium,held in early November 2018,proposed to implement six aspects of policy measures,the second of which is "solving the problem of financing difficulties for private enterprises." The"Government Work Report" of 2019 pointed out that "China's real economy is more difficult,and the problem of financing difficulty for private and small or medium-sized enterprises has not been effectively alleviated.“It is necessary to continue to reduce taxes,to continue to optimize the business environment,and to support the development of private enterprises.” It can be seen that the central decision-making level is paying more and more attention to improving the financing dilemma of private enterprises and supporting the development of private enterprises.It presents that China's credit market has a large room for reform.Reforming the differences in financing ownership in the credit market and promoting the flow of credit resources to the private sector of relatively high production efficiency will help improve the efficiency of factor allocation and promote economic sustainability.Regarding this point of view,this paper makes a comprehensive analysis of how financing ownership difference affect the economic growth through the channel of factor allocation.This paper applies the combination of growth accounting analysis,quantitative regression analysis and dynamic general equilibrium model analysis to systematically study the topics such as factor allocation and economic growth,financing ownership difference and factor allocation efficiency,and financing ownership difference and economic growth.The second chapter of this paper briefly introduces the theoretical basis of empiricalanalysis and the related theories of dynamic general equilibrium modeling.Subsequently,the related literature is briefly reviewed according to the research logic of this paper.The third chapter constructs the factor misallocation model by using the accounting analysis method,accurately analyzes the factor re-allocation effect by separating the economic impact effect of the input factor quality,and then,discusses the degree of influence of factor re-allocation on economic growth.This study decomposes the improvement of TFP into four parts: factor quality improvement,factor re-allocation effect,industrial value-added share change effect and micro individual TFP enhancement.It accurately measures the economic impact effect of factor re-allocation,and obtains empirical research based on the use of China's industrial data.We conclude that the factor-driven growth mode has not changed.In addition,the improvement of factor quality has a certain positive effect on economic growth.Finally,the factor re-allocation effect plays an increasingly important role in the process of economic development.Therefore,the reforms of the production factor market will further promote the occurrence of factor re-allocation,hence,improve the efficiency of factor allocation,and then release the momentum of economic growth.The analysis of the current situation of factor allocation under the ownership structure shows that,within current Chinese enterprise sector,financing ownership difference is evident.In addition,enterprise sector still faces a considerable degree of credit distortion under the ownership structure.The fourth chapter of this study conducts a quantitative regression analysis of the quantitative relationship between financing ownership difference,absolute levels of financing constraints,capital misallocation levels,and total factor productivity.Results show that differences in financing ownership have a negative impact on economic growth by exacerbating capital misallocation.On the contrary,financial development(i.e.,easement of absolute levels of financing constraints)has a positive impact on economic growth,by easing the degree of capital misallocation.Furthermore,state-owned enterprises have a negative impact on the local economy through financing ownership difference.It can be seen that the reform measures aiming at alleviating financingownership difference will boom a new round of economic growth.Both accounting analysis and empirical research are post-event analysis.The financing ownership difference also have a dynamic impact on economic growth.The reform measures for the financing ownership difference will bring dynamic changes to macroeconomic variables.Accounting analysis and empirical research cannot quantify the dynamic economic effects corresponding to the reform measures and regulatory policies that lead to the re-allocation of factors,while the macroeconomic theory model by portraying the influence mechanism of financing ownership difference on the efficiency of factor allocation can be used to study such problems.Results from model simulation are used to quantify the economic growth effects of reform measures and regulatory policies,and to study the dynamic impact of financing ownership difference on economic growth.The research on the dynamic impact of financing ownership difference on economic growth is divided into two aspects: the impact on long-term trends and the impact on short-term fluctuations.The fifth chapter of this study constructs a two-sector RBC(Real Business Cycle)model to describe a variety of distorting policies,including financing ownership difference,and to embed the financial behavior of the state-owned enterprise sector.The simulation of dynamic transition of the economic system corresponding to various reform measures shows that a single reform policy will not achieve its policy goal,while reforming aiming at the distorting policies such as ownership discrimination in credit policies,reducing distortionary taxes,and creating a fair competition field will help achieve policy goals.The sixth chapter of this study studies the short-term dynamic impact of financing ownership difference on economic growth,and constructs a DSGE model that incorporates enterprise heterogeneity and financial friction.It focuses on the analysis of the impact of financing ownership difference on the effectiveness of macro-control policy.The results show that,due to the existence of differences in ownership,compared with government investment expenditure,government consumer expenditure can achieve a large increase in output without deteriorating the economicstructure.