The Research About Resource Misallocation And The Total Factor Productivity Loss Of Energy Industry In China

China's economy steps into the "new normal" phase, along with several problems including a deceleration in the economy, overcapacity growing, seriously out-of-balance industrial structure, highly inefficient, outdated technology and so on. These existed problems seriously restrict the development of Chinese economic. How to change the mode of economic development in China during the transition period? Energy industry is the basic industry of China's economic development. The extensive economic development during the 30 years' reform and opening up has brought all sorts of drawbacks. Energy industry is not only overcapacity, seriously out-of-balance industrial structure, but also faces with policy distortions, price distortions and other elements of factor misallocation, and the economic resources don't flow from low efficiency to high efficiency of the business enterprise. Energy industry is wandering what to do next in front of all kinds of problems. Therefore, to seek a method to measure the factor misallocation and the total factor productivity loss of the energy industry are particularly important. Trying to analysis the factors which affect the energy industry factor misallocation will be fundamental to the entire energy industry development.Based on the Chinese industrial enterprise database from 2001 to 2011, the paper selects 2001?2006?2011 years as representatives and uses Hsieh and Klenow (2009) method to measure the factor misallocation and the loss in total factor productivity. The paper also analyzes the influence factors of the factor misallocation in energy industry through the multivariate linear regression method. From the results of the study, firstly we can know Chinese energy industry is facing sever capital distortion and output distortion. And the total factor productivity of energy industry produces a substantial loss due to factor misallocation. Chinese energy industry TFP would gain an increase more than 20% in the sample period if the factor misallocation is corrected. Secondly, we find that these factors have a significant influence on the factor misallocation of the energy industry including corporate ownership, export proportion, regional border effect, imperfection of financial markets, government subsidies. The corporate ownership, corporate ownership, government subsidies, these factors all show negative effect on the comprehensive distortion of the energy industry, but the regional border effect, enterprise scale, the educational level of employees, these factors have positive effect on the comprehensive distortion of the energy industry.