Enterprise Markup,Entry And Exit And Total Factor Productivity Of Manufacturing

In the process of asymptotic transition,China's economy does not have the comparative advantage of total factor productivity.On the one hand,the continuous slowdown in the growth rate of China's total factor productivity has directly led to a slowdown in economic growth.On the other hand,for a long time,the contribution rate of total factor productivity to China's economic growth has been lower than the average level of the international 50% contribution rate and economic growth mainly relies on a low-quality development model driven by factors.At this stage,in terms of system reform,our country's economic reform will be in an asymptotic transition stage for a long time.According to the content of the report of the 19 th National Congress,China will continue to uphold the pattern of open competition,build a high-level open economy,and create a trade and investment liberalization environment.Manufacturing industry is the cornerstone of my country's economic development,and vigorously improving total factor productivity is the only way for the manufacturing industry to break through the new normal and develop into a high-quality efficiency paradigm of "Chinese quality manufacturing" and "Chinese intelligent manufacturing".In terms of market-oriented mechanism construction,competition mechanism is one of the core factors that affect the growth of total factor productivity of enterprises.Constructing an effective market competition system with "competitive neutrality" as the basic criterion is to promote the process of market disruptive innovation and achieve high-quality development.Therefore,in order to build an effective paradigm of efficient competitive economic development,it is necessary to further clarify the internal impact mechanism of market competition mechanism on the change of total factor productivity of enterprises.From a micro perspective,the forms of market competition faced by enterprises are multi-faceted.So this article specifically explores the micro-effects of market competition mechanisms on the changes in total factor productivity of enterprises,focusing on product market competition,factor market competition,and dynamic competition caused by corporate entry and exit.Through theoretical and empirical analysis,the main research conclusions of this article are as follows:(1)The article uses enterprise market power to measure the degree of competition in the product market,and the study finds that there is a significant positive correlation between enterprise market power and total factor productivity.That is,enterprises have market power in the product market,which is conducive to the improvement of their total factor productivity,which is consistent with the basic innovation theoretical of Schumpeter.(2)In view of factor market competition,the distortion of enterprise factor allocation is a manifestation of the failure of factor market competition mechanism.Based on the theoretical analysis framework of total factor productivity of Osotimehin(2019),this paper decomposes the total factor productivity of various industries and aggregate levels in China's manufacturing industry from the perspective of relative changes in resource allocation efficiency.The results show that the technical efficiency of enterprises and the net efficiency of entry and exit are the main factors that promote the total factor productivity of various industries in China's manufacturing industry.Among them,technological efficiency has contributed 48.33% of the average total factor productivity growth of China's manufacturing industry.The industry's total factor productivity increased by 32.15%,while the resource allocation efficiency only contributed a share of 18.12%,that is,the resource allocation efficiency caused by factor distortion is the main reason hindering further growth of total factor productivity.In addition,compared with previous studies,it can be argued that the effect of resource reallocation based on input factors overestimates the contribution of resource allocation to total factor productivity.(3)By comprehensively considering the two factors of the number of companies entering the rate and the difference in the total factor productivity of the entering company relative to the incumbent,this paper builds an indicator of the firm's entry intensity.The study found that the entry of large-scale firms during the period of economic transition is basically an effective entry and effectively promotes the growth of total factor productivity of incumbent enterprises through competition effect.At the same time,the competition effect caused by the entry of enterprises is non-linear,that is,moderate competition shocks mainly produce competitive promotion effects for incumbent enterprises,while excessive competition shocks will have the effect of dissipating competitive rents,which is not conducive to the continuous improvement of the company's total factor productivity.It can be seen from the impact of the intensity of entry of enterprises on enterprises of different ownerships that state-owned enterprises suffer from widespread lack of competition compared with foreign-funded enterprises and private enterprises.(4)The research on zombies found that the existence of zombies not only caused distortions in the allocation of incumbent companies,that is,mismatched connotative resources,but also increased the probability of normal companies exiting the market through crowding out and contagion effects.That is to cause mismatch of episodic resources.On the basis of distorting the efficiency of factor allocation in the market,the existence of zombie enterprises has worsened the growth of total factor productivity of manufacturing enterprises in our country,and due to the mismatch of resources that cannot be adjusted to a normal state immediately,the existence of zombie enterprises has a positive effect on the total factor productivity of normal enterprises Chain inhibition effect.In addition,from the perspective of entering the competition mechanism,the competition promotion effect caused by the entry of enterprises is conducive to the improvement of the total factor productivity of zombie enterprises,that is,the market-based competition mechanism can be used to alleviate the zombie problem in the industry.The innovations in this article mainly include:(1)When analyz the influence of market power on total factor productivity,the company's market power indicators are further broken down into homogeneous and heterogeneous terms,and the deep-level factors that influence market forces' influence on total factor productivity are analyzed.(2)Clarify the concepts of resource reallocation and resource allocation efficiency.The former focuses on correcting the effect of changes in corporate factor inputs after the distortion of factors on total factor productivity,while the latter directly strips the factor distortion and analyzes the impact of the relative changes in resource mismatch caused by the distortion on the total factor productivity.(3)As for the market competition effect caused by the entry of enterprises,this article constructed an indicator of the intensity of the entry of enterprise productivity based on the entry rate of the enterprise,and analyze the mechanism of the effect of different degrees of entry intensity on the total factor productivity of incumbent enterprises.(4)Based on the analysis of the impact of zombies on the mismatch of normal enterprise resources,analyze the change mechanism of the total factor productivity of zombies from the perspective of market competition,and analyze the market-oriented disposal methods of zombies.