Re-study On Capital Allocation Of Chinese Manufacturing Enterprises

In the era of industrial economy,manufacturing industry is the lifeblood of a country’s economy,and the basic system of China’s socialist market economy determines that public ownership is the main body of the Chinese economy.Therefore,China’s manufacturing industry is inevitably dominated by State-Owned Enterprises(SOEs).The high-quality development of China’s economy and the Chinese-style modernization have put forward higher requirements for the improvement of enterprise efficiency.However,for SOEs with more production resources and better management advantages,their production efficiency is not satisfactory.Therefore,improving the capital allocation efficiency of SOEs in manufacturing and thereby enhancing their productivity can not only improve the production efficiency and international competitiveness of China’s manufacturing industry,but also better play the role of SOEs in innovation leadership and strategic support.In fact,as economic "agents" of governments at all levels,SOEs also bear social responsibilities beyond the economy.Especially when the macro economy experiences "overheating" or "depression",SOEs often choose countercyclical investment in response to macroeconomic regulation policies.Although it may reduce the capital allocation efficiency of SOEs,it helps the country smooth out economic fluctuations.Therefore,how to improve the capital allocation efficiency of Chinese manufacturing enterprises,especially manufacturing SOEs,and find a balance between the economic and public aspects of SOEs is naturally an important research topic of concern for both theoretical and practical departments.On the basis of systematically sorting out the sources of capital misallocation,combined with the macro and micro economic reality of our country,this dissertation firstly defines the concept of capital misallocation-the cross-sectional variance of the value of marginal product of capital among enterprises,puts forward the measurement method of capital misallocation,and integrates various sources of capital misallocation into the standard dynamic general equilibrium model at the firm level.We study the theoretical mechanism by which market frictions and market distortions lead to capital misallocation and productivity loss.Moreover,from the perspective of capital misallocation,the productivity difference between SOEs and Non-SOEs is compared.In addition,based on the sample data of China Industrial Enterprise Database and China City Statistical Yearbook,this dissertation empirically studies the capital misallocation effect and its influencing mechanism of SOEs,zombie enterprises and industrial chain leading enterprises.Finally,considering the role of SOEs as "agents of government",this dissertation studies the macroeconomic regulation effect of SOEs’investment,and the social responsibility of SOEs to exchange the "economy" of capital misallocation for the "positive externality" of macroeconomic regulation.It not only partially explains the reason why the degree of capital misallocation of SOEs is higher than that of Non-SOEs;And it provides the reference evidence for expanding the macro-control policy toolbox of our country and perfecting the macro-control theory with Chinese characteristics.This research obtains the following results:(1)Capital misallocation will reduce the overall TFP,and capital adjustment cost,information friction and market distortion are the main sources of capital misallocation of Chinese manufacturing firms;(2)For SOEs that occupy more production resources,have better operating environment and enjoy more favorable policy support,the degree of capital misallocation is significantly higher than that of Non-SOEs,while the production efficiency is significantly lower than that of Non-SOEs;(3)The main source of capital misallocation of SOEs is market distortion.In particular.the large number of zombie enterprises is one of the main reasons for the high degree of capital misallocation of SOEs.Meanwhile,zombie enterprises have a market crowding out effect on local enterprises,that is,zombie enterprises cause serious extension misallocation of resources;(4)Under the new nationwide system,SOEs have their unique advantages,which can concentrate on technological innovation,obtain sufficient resources to expand the scale of enterprisesr make them quickly become the leading enterprises of the industrial chain leading the direction of industrial development,and drive the upstream and downstream enterprises of the industrial chain to jointly promote the modernization of the industrial chain.Leading enterprises in the industrial chain can significantly improve the capital misallocation among local enterprises in the same industry;(5)Considering that SOEs have the dual attributes of"economy" and "publicity",SOEs sacrifice certain "economy" in order to support and cooperate with the government’s implementation of macroeconomic regulation,that is,the macro-regulation effect of counter-cyclical investment of SOEs will lead to capital misallocation.Finally,based on the research conclusions of this dissertation,we discuss the relevant strategies to improve the capital misallocation of China’s manufacturing industry,and put forward the corresponding policy implications.