Research On The Policy Factors Of China's Manufacturing Misallocation

Basic economic growth theory believes that the improvement of TFP level mainly comes from technological progress and the improvement of resource allocation efficiency.In 2020,China's annual GDP reached 101.5986 trillion yuan,of which the secondary industry accounted for 37.8%,and the proportion of R & D investment in total GDP rose to 2.4%,which is at a high level in the world.However,China's TFP level is relatively low,and its contribution rate to overall economic growth is less than 40%.It can be seen that the seriousness of the resource misallocation problem is relatively high.Changing the economic development mode and increasing the level of TFP requires further research.Based on the real predicament,it is a crucial research topic to study the characteristic facts,policy factors and influencing mechanism of misallocation in China's manufacturing industry.There are many factors that cause the misallocation,and there are two main ways to identify the influencing factors.There are "direct methods" that only study a single influencing factor,and "indirect methods" that study the comprehensive influence of all potential factors.Based on the influencing factors from the perspective of the department,there are both factors caused by the market's incompleteness and factors caused by the government's economic behavior.However,most existing research focuses on the incomplete market perspective,focusing on the impact of market distortions on resource misallocation,and relatively few factors caused by policy distortions.The characteristic of the mixed economy is an economic system that has both government intervention and market spontaneous regulation.Enterprises are the most basic microeconomic subjects,and their activities may be affected by government economic behavior.The improvement of a country's manufacturing resource allocation efficiency should be based on policies that minimize the distortion of resource allocation efficiency.Therefore,policies have an important impact on the resource allocation efficiency of manufacturing.This article attempts to integrate the “direct method” and the “indirect method” into a unified analysis framework to explore the impact of policy factors on the misallocation and the mechanism of action on the overall TFP level.After conducting a literature review and constructing a theoretical framework,Chapter 4 summarizes several characteristic facts of Chinese manufacturing at the enterprise,industrial,and regional levels.Later,this paper focuses on the enterprise,industrial,and spatial(regional).The policy at the level affects the mechanism of misallocation.Theoretical discussion and empirical analysis are carried out.A number of practical issues such as mixed ownership reform,urban administrative level,and county-level district reform are selected.Comprehensive studies have drawn the following conclusions point: Chapter 5 mainly studies the impact of mixed ownership reform on misallocation.The main conclusions are:(1)The reform of mixed ownership can alleviate the degree of capital misallocation of state-owned enterprises,with an improvement of 5.78%-6.41%.Reform strategies such as state-controlled companies,state-owned equity companies,and privatization have gradually increased the degree of resource distortion Situation.(2)Mixed ownership reform can improve the TFP level of state-owned enterprises.Among them,the state-owned shareholding reform has the highest improvement in TFP levels.(3)The mechanism research found that the mixed ownership reform improves the capital allocation efficiency of manufacturing state-owned enterprises by reducing operating expenses and subsidizing income.Chapter 6 mainly studies the influence of urban administrative level on the distortion of manufacturing scale distribution.The specific conclusions are as follows:(1)The urban administrative level can alleviate the distortion of the enterprise scale distribution.Studies have shown that sub-provincial cities have the highest degree of improvement in distortion of enterprise size,with an improvement of 8.06%-8.53%.In terms of ownership,state-owned enterprises,Hong Kong,Macao and Taiwan enterprises have the largest improvement in scale distortion,at 8.88% and 7.77%,respectively.(2)The city administrative level can improve the overall TFP level of manufacturing enterprises.In terms of ownership,collective and foreignowned enterprises have the highest level of improvement in manufacturing TFP.(3)From the perspective of functioning mechanism,the urban administrative level can alleviate the distortion of enterprise scale distribution through channels such as government financial subsidies and human capital.(4)The city administrative level can improve the distorted distribution of the enterprise size,reduce the gap between the enterprise size distribution and the enterprise productivity,and increase the overall productivity level of the manufacturing enterprises,which shows that the city administrative level helps to improve economic efficiency.Chapter 7 mainly studies the impact of the county district reform on misallocation.The main conclusions are as follows:(1)China's policy of withdrawing counties from districts can optimize the state of resource allocation.This policy can significantly optimize the resource allocation efficiency of labor,but the resource allocation efficiency of capital has deteriorated.The main reason is that labor may be affected by population migration caused by urban expansion,and capital flow is more likely to be caused by financial markets,etc.Factors.(2)Because the policy of withdrawing counties from districts affects the efficiency of resource allocation,it has an impact on total productivity.The policy of withdrawing counties from districts has expanded the size of cities,mainly through sharing,matching,learning and other ways to enhance the “aggregation effect” of the urban economy,thereby improving the overall TFP level of enterprises.(3)The policy of withdrawing counties and establishing districts mainly affects the aggregate productivity by increasing the average size of micro-enterprises,and this influence shows heterogeneous characteristics.The policy of withdrawing counties from districts has raised the overall TFP level in the eastern region higher than that in the central and western regions.