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Factor Allocation,Technological Progress And Total Factor Productivity Of Manufacturing Industry

Posted on:2022-09-13Degree:DoctorType:Dissertation
Country:ChinaCandidate:X Y ZhangFull Text:PDF
GTID:1489306314473634Subject:National Economics
Abstract/Summary:PDF Full Text Request
As China enters the new development stage,it is essential to promote growth drivers of manufacturing industry from quantity growth of factor inputs to total factor productivity(TFP)growth,which is vital to achieving high-quality development of China's manufacturing industry and high-quality economic development.At present,China's manufacturing industry is facing practical problems such as reforms of market-based allocation of production factors is sluggish,capacity for independent innovation is not strong,TFP growth lacks momentum and so on.In order to promote high-quality development of China's manufacturing industry,it is urgent to find effective routes to improve TFP.The key to addressing these issues lies in improving the allocation efficiency of various factors and boosting technological progress.The efficiency of factor allocation mainly depends on factor input structure and the degree of factor misallocation,while technological progress contains its nature and its sources.Based on factor allocation and technological progress,this dissertation focuses on factor input structure,factor misallocation,biased technological progress,and technological progress mode.The aim of this dissertation is to answer the following two questions.On one hand,what is the relationship between factor allocation and technological progress?On the other hand,how to play a better role of technological progress mode in improving TFP?In order to achieve the goal,this dissertation explores the internal mechanism among factor allocation,technological progress and TFP of China's manufacturing industry from the following three aspects.First of all,this dissertation starts with analyzing the relationship between factor input structure and biased technological progress.Based on the growth accounting approach of standardised CES production function,this dissertation theoretically explores the interactive influence mechanism of factor input structure and biased technological progress on the TFP.Both the growth accounting approach and the econometric regression model are used to examine the preceding mechanism by using industrial-level panel data taken from large and medium-sized Chinese manufacturing enterprises from 1999 to 2016.The results suggest that the interaction effect of factor input structure and biased technological progress on TFP growth is positive.In other words,compared to the fixed-point period,the overall degree of capital deepening shows an upward trend,while technological progress is capital-biased within China's manufacturing industry,which means that capital-biased technological progress is appropriate for factor input structure and promotes TFP growth.Secondly,considering the relationship between factor misallocation and independent innovation,this dissertation builds a heterogeneous firm model of monopolistic competition,which incorporates variable factor market distortions,fixed factor market distortions,and input in independent innovation.Based on the model,this dissertation theoretically studies not only the direct influence mechanism of factor misallocation and independent innovation on TFP,but also the indirect influence mechanism of factor misallocation on TFP arising from independent innovation input.The instrumental variable model is used to examine the direct and indirect mechanism by using firm-level panel data taken from Chinese listed companies from 2007 to 2019.The results indicate that there is a directly negative effect of capital misallocation and land misallocation on TFP.However,the direct effect of independent innovation input on TFP is positive.Moreover,capital misallocation is found to inhibit independent innovation input,which further has a negative impact on TFP growth.Last but not least,aiming to play a better role of technological progress mode in improving TFP,this dissertation reveal the effect of vertical inter-industry linkages and transform traditional industries with digital technologies.On one hand,combining knowledge production function and industrial linkage theory,this dissertation studies the influence mechanism of technology and knowledge spillovers based on vertical inter-industry linkages.To examine the preceding mechanism,both knowledge production function and spatial panel Durbin model are used to deal with the endogenous problem caused by spatial lag.Also,industrial-level panel data taken from large and medium-sized Chinese manufacturing enterprises from 2003 to 2015 is used to conduct the empirical test.Empirical analysis reveals that vertical inter-industry linkages has a strengthening effect on the positive effect of independent innovation input on TFP growth.That is to say,independent innovation input in both the upstream and downstream industries are in favor of target industry's technological progress and TFP by way of technology and knowledge spillovers based on vertical inter-industry linkages.On the other hand,this dissertation builds a model of expanding intermediate good varieties,which incorporates transform traditional industries with digital technologies and technological progress modes.Both strengthening effect and weakening effect on the positive effect of independent innovation input on TFP growth are pointed out,which arising from transform traditional industries with digital technologies.Both dynamic panel model and panel threshold model are used to examine the preceding mechanism by using industrial-level panel data taken from large and medium-sized Chinese manufacturing enterprises from 2000 to 2015.The major findings show that both strengthening effect and weakening effect on the positive effect of independent innovation input on TFP growth exist at the same time.At the very beginning of transforming traditional manufacturing industries with digital technologies,the capital goods property of ICT plays a leading role,in other words,there exhibits a weakening effect on the positive effect of independent innovation input on TFP growth.With the progress of transforming traditional manufacturing industries with digital technologies,the knowledge capital investment and the general purpose technology property of ICT plays a leading role,which means that there exhibits a gradually strengthening effect on the positive effect of independent innovation input on TFP growth.Main contributions of this dissertation are reflected in the following three aspects:(1)By putting forward a new accounting method of standardised CES production function based on the growth accounting approach,this dissertation shows the interactive influence mechanism of factor input structure and biased technological progress on TFP.Based on the new accounting method,a new econometric regression model also has been put forward,which overcomes the limitation of traditional growth accounting approach's not considering other influencing factors of TFP.At the same time,this dissertation expand related research from the perspective of the relationship between factor input structure and biased technological progress.Thus,this dissertation contributes some findings to the appropriate technology theory and the technological congruence theory.(2)This dissertation incorporates variable factor market distortions,fixed factor market distortions and input in independent innovation into a heterogeneous firm model of monopolistic competition.Meanwhile,an empirical analysis is made to measure the economic effects of capital misallocation,labor misallocation and land misallocation.In a word,this dissertation bring to light not only the direct influence mechanism of factor misallocation and independent innovation on TFP,but also the indirect influence mechanism of factor misallocation on TFP arising from independent innovation input.The above work makes up for the lack of related research from perspectives of the indirect influence mechanism of factor misallocation on TFP and the economic effects of labor misallocation.Overall,contributions of the above two aspects expand related research from the perspective of the relationship between factor allocation and technological progress.That is to say,this dissertation contributes some findings to related research from the perspective of overcoming the limitation of studying the influencing factors of TFP from two independent perspectives,which contain of factor allocation and technological progress.(3)Combining knowledge production function and industrial linkage theory,this dissertation studies the influence mechanism of technology and knowledge spillovers based on vertical inter-industry linkages.Furthermore,this dissertation builds a model of expanding intermediate good varieties,which incorporates transform traditional industries with digital technologies.Both strengthening effect and weakening effect on the positive effect of independent innovation input on TFP growth are pointed out,which arising from transform traditional industries with digital technologies.In order to promote high-quality development of China's manufacturing industry,it is urgent to find effective ways to improve TFP.This dissertation therefore contributes some findings to effective ways of technological progress mode in improving TFP.The policy implication is very clear that balance the relationship between factor allocation and technological progress,and at the same time fully leverage the role of vertical inter-industry linkages and transform traditional industries with digital technologies.Specifically,we should make appropriate choices of factor allocation and technical progress,and at the same time carry out systemic reforms to promote the market-based allocation of production factors.Accordingly,we will further energize and raise our capacity for independent innovation.Last but not least,we should modernize industrial chains by promoting the integration of industrial and innovation chains,and in the meantime upgrade traditional manufacturing sectors with digital technologies by promoting the integration of the new generation information communication technology and China's manufacturing industry.Consequently,we can play a better role of technological progress mode in improving TFP.Overall,tireless efforts should be kept making to achieve high-quality development of China's manufacturing industry and high-quality economic development.
Keywords/Search Tags:Factor Input Structure, Factor Misallocation, Biased Technological Progress, Technological Progress Mode, Total Factor Productivity of Manufacturing Industry
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