The Research On The Impact Of Enterprises’ Vertical Integration On Productivity

In recent years, multinational corporations have actively implemented the expansion strategies in our county with the increasingly fierce international competition. The vertical layout which based on the industrial chain is leading to the manufacture enterprises suffered loss of profits. In this context, the implementation of industrial restructuring and upgrading has become China’s manufacturing enterprises’subject to reverse the primary issues. In the realization of several upgrading paths, vertical integration is considered to be the efficient one to foster competition and break the predicaments. Therefore, studying the impact of implementation of vertical integration on its own competitiveness is of great significance.Based on the above understanding, this article choose total factor productivity (TFP) as the indicator of enterprise’s competitiveness, by using LP and ACF these two methods to measure TFP of manufacturing listed enterprises in our country. Then, this article go on studying the vertical integration degree of the enterprise’s impact on productivity preliminarily according to using static panel regression. Further a test of self-selection is due to done based on stochastic dominance. Finally, this article using generalized propensity score matching method to paint variation tendency of productivity along with the degree of vertical integration from the dynamic perspective.