Research About Effect Of Manufacturing Agglomeration On TFP Growth

Since the economic development of China has entered a new normal stage,Chinese economic growth from a high-speed growth to a medium-speed growth,industrial structure has also undergone major changes,the tertiary industry catch up with the second Industry,became the largest economic contribution of the industry.But the rapid development of the service industry requires a strong industry as a support.The key to solve these problems is to strong the manufacturing industry of China and raise the level of total factor productivity in China.In recent years,more and more scholars paid attention to the improvement of TFP.However,in the existing literature,the empirical results of scholars are still controversial.This shows that the level of industrial agglomeration will not necessarily lead to the growth of TFP.Based on this,this paper chooses the panel data of 30 provinces in China,from the point of R&D,using the threshold regression model,trying to test the nonlinear relationship between agglomeration and TFP.Firstly,this paper sorts out the the relevant literature about the relationship between industrial agglomeration and TFP by domestic and foreign scholars.Based on this,calculates and simple analyzes the level of agglomeration of 30 provinces,found the development of manufacturing industry is unbalanced in space.The agglomeration of eastern region is much higher than the western and northeastern regions.Then,using the DEA-Malmquist index,estimating the TFP of each region and decomposed it by DEAP2.1 software.It is found that the difference of the growth rate of TFP in each region is not obvious.Then,using Hansen’s threshold regression model,this paper takes the panel data of provinces from2000 to 2014 as the research object,compares the proportion of R&D investment in each region as a threshold variable,researches the relationship between the industrial agglomeration and TFP.The results shows that:(1)there is a non-linear relationship and a threshold effect between manufacturing agglomeration and TFP;(2)FDI has a negative effect on the growth of TFP;(3)human resource has a positive effect on TFP;(4)the process of marketization is conducive to the growth of TFP;(5)the level of urbanization has a negative effect on the growth of TFP.Finally,based on the theoretical analysis and empirical test,this paper gives advices on how to adjust the industrial layout and improve the regional TFP in the future.This paper based on the panel data of 30 provinces of China,and used the threshold regression model to study the linear relationship between manufacturing agglomeration and total factor productivity from the perspective of R&D investment.This paper has made some innovations in the research object and research method and angle.