Research On The Effect Of Institutional Environment On TFP Of Enterprises

Under the new economic conditions,China is vigorously implementing the structural reform of the supply side,the purpose is to reduce costs and improve TFP.Similarly,measure of industry and enterprise development status symbol is also TFP.One of the effective way to improve the TFP is to promote technological progress and institution innovation.The pharmaceutical industry is closely related to the development of science and technology,and has good prospects for development.It is of great significance for China,a large pharmaceutical country,to enter the ranks of medical power from an early age.Therefore,It has become a urgent problem that how to improve the core competitiveness of China's pharmaceutical industry,make our country medicine industry from low-end to high-end,complete industry transformation and upgrading,promote the development of medicine industry in our country.This article,from the perspective of the institutional environment,analyzes the TFP of pharmaceutical manufacturing enterprises,which has certain theoretical significance and practical value.Based on the institutional economics and relevant literature review,the institution environment is divided into three sub items:the degree of marketization,the level of protection of property rights and the relaxation of government intervention.Hackle the direct influence of institutional environment on total factor productivity,its influence and endogenous and exogenous mechanism.Based on regional level data to conduct a preliminary test on the relationship between institutional environment and TFP,then use the panel data of China pharmaceutical enterprises to research problems of this paper.Test based on regional level data found the improvement of the institutional environment can promote technology innovation and product innovation to improve TFP.The contribution of product innovation to TFP growth is bigger.The relaxation of government intervention can promote the product innovation to the maximum extent,thus increasing the total factor productivity.Quantitative analysis results of pharmaceutical enterprises shows that the strengthening of property rights protection,the relaxation of government intervention for has a positive effect for the TFP of pharmaceutical enterprises.At the same time,the mechanism analysis shows that the optimization of the institutional environment can promote the TFP of pharmaceutical enterprises by reducing enterprise management costs,increasing profits and increasing the sales value;the external mechanism test found that The degree of marketization,the level of protection of property rights and the relaxation of government intervention have different effects on the level of regional foreign investment and the growth of technology market transaction volume,and the effect of absolute value and relative value is different.Overall,The promotion of the degree of marketization,the protection of property rights and the relaxation of government intervention have a positive role in promoting the level of regional foreign investment;Among them,the relaxation effect of government intervention is the most obvious,and it is also the result of the relative level of foreign investment.the impact of technology market transactions,The improvement of the three sub items of the institutional environment has a positive effect on its absolute value,However,Enhance the level of protection of property rights for the relative value of the technology market trading volume has an inhibitory effect.