Total Factor Productivity Effect Of Factor Market Distortion And Impact Factor

classical literature mainly holds the opinion that resource misallocation is a key distribution to block the growth of TFP. this article takes a more systematic analysis about the influence of sub-factor distortion on TFP in the view of resource misallocation.On the theoretic side,taking the example by the model of Hsieh and Klenow (2009),in addition, brings land factor market into consideration, relaxes the restrict of constant revenue scale, considers mutual effects between labor and capital factor,this article analyzes the mechanism from sub-factor distortion to TFP. On the empirical side, this paper incorporates the corresponding empirical model to calculate the results:financial distortion index has a 3.9% "direct effect" on TFP,has a 1.2% "indirect effect"; fdi distortion index has a 6.8% "direct effect" ,has a 3.5% "indirect effect"; while labor distortion index has a 0.67% "direct effect" as it "increases", has no robust "direct effect"; tec distortion index has a.42% "direct effect". The empirical consequence suggests:1.As sub-factor distortion indexs increase, TFP growth rate would decrease.2. There maybe exists concave relation between sub-factor distortion indexs and TFP. Therefore, formulating factor market planning specifically,consummating capital factor market,reforming labor factor market,cultivating technology factor market,which follows persistant economic growth and avoids stagnating.This paper is structured as follows:Chapter 1 is an introduction part,which introduces the background,theoretical and practical significance,the related foreign and domestic literature,the structure framework of this paper,and its innovation.Chapter 2 establishes an expanded monopolistic competition model to reveal the change in sub-factor market is an important source of hindering the growth of TFP.Thus,we obtain two related propositions.Chapter 3 takes empirical research about the propositions.Chapter 4 explains the reasons of factor market distortionChapter 5 summarizes the main conclusions of this study,gives suggestion about the factor market policies,points out the boundedness in this research,and look forward to the future research direction.