The Key To Deepen Reform Of The State-Owned Enterprises Is To Promote Total Factor Productivity

After 30 years’ rapid growth, China’s economy have faced a major shift of the level of factor endowments, such as the tailing off of demographic dividend, rising factor costs, the decreasing of return on investment, the declining of total factor productivity and so on, which shows that efforts to cultivate new driving forces for economic growth must be made. In March 2015, Premier Li Keqiang in his government work report for the first time proposed to raise Total Factor Productivity(TFP), and promote China’s economic development mode shift from investment type to efficiency type, so as to form endogenous growth momentum. Based on the above context, the state-owned enterprises face the same dilemma of growth, which can only be solved by increasing total factor. Therefore, at the beginning of the new round of SOE reform, it is particularly necessary to study from the perspective of TFP.This paper aims to study the TFP of state-owned enterprises mainly through theoretical analysis and empirical analysis, in order to analyze the influencing factors of SOEs’ TFP and clues for SOE reform. All in all, the thesis have answered three questions: First, the influencing factors of state-owned enterprises’ TFP; the secondly, the TFP change of stateowned enterprises through SOE reform; the thirdly, how to reform state-owned enterprises to improve TFP.The paper is divided into five chapters. The specific content as follows:The first chapter is a literature review of home and abroad. Studies on TFP of SOE rise from the attention on Chinese SOE reform, many scholars take TFP as a measure of impact of the Chinese reform on the performance of Chinese SOE, and try to analyze the influence of specific reform measures on SOE’s TFP. While, the existing literature is still lack of systematic study of on TFP of state-owned enterprises.The second chapter is about the Theoretical Study of SOE’s TFP. TFP was firstly proposed by Solow, so far there are many researches on TFP, most of which focus on the empirical analysis. Based on the analysis of our basic economic system,this chapter aims to research the characteristics of the TFP of state-owned enterprises, and therefore builds the influential factor model of SOE’s TFP from the four dimensions——technological innovation, organizational innovation, resource allocation and State-owned assets management system innovation. From the four dimensions, we analyze the relationship between total factor productivity and SOE reform.The third chapter is to measure and analysis of state-owned enterprises’ TFP. Through the classic Solow model, this paper select the state-owned and state-holding industrial enterprises from 1978 to 2013 as samples, using the C-D production function to regress the production model to estimate the elasticity coefficient of capital factor and labor factor. It is noteworthy that, the redundant personnel leads to the diminishing marginal returns of labor factors, therefore the estimated elasticity coefficient of labor factors is negative. Based on the characteristics of the resulted TFP index, we divided the period form 1978 to 2013 into four sub-periods and make specific analysis of TFP growth in each sub-period. From the analysis we can come to the point that the changes in TFP is closely related to SOE reform.The fourth chapter is to analyze the constraints faced to increase the state-owned enterprises’ TFP. During the 35 years’ SOE reform, the state-owned enterprises’ TFP have increased and got a more comprehensive system basis to grow in the future. But from the view of each dimension, state-owned enterprises’ TFP growth still facing many constraints, reform needs to be stimulated to supply a better institutional environment.The fifth Chapter is to provide proposals for the new round of SOE reform from the perspective of improve TFP. The new round of SOE reform begins in a complex international and domestic economic situation. Combined with the complex background, the article makes recommendations for state-owned enterprises to solve the constraints to improve TFP.