The Influence Of Financing Structure And Capital Distortion On Total Factor Productivity

Since the reform and opening up,the rapid development of Chinese economy,a large number of scholars on the total factor productivity(TFP)has been studied.In recent years,economic scholars through empirical study found that productivity depends not only on the level of enterprise technology progress and production quantity,still depends on the allocation efficiency of production factors.China factor market is not developed,plus the influence of many factors on the government control,resulting in a certain distortion of market factors China,which reduces the total factor productivity in China to a certain extent.According to the economic research shows that compared to the labor market,China’s capital market distortion is more serious.In Chinese,financial development lags behind,relying mainly on bank financing system has long been the dominant position,the majority of small-scale,financial opaque,mortgage conditions of small and medium-sized enterprises to obtain bank loans,the cost is very high,so it can only make financing by looking the other way.The financing constraints and factors of inequality exacerbated the distortion the extent of China’s capital market,in this context,to improve the allocation efficiency of China’s capital project is very difficult.However,due to the existing literature mostly ignored the relationship between corporate financing structure and capital distortions so the financing structure as a starting point to explore the distorted capital and total factor productivity loss this is not only the introduction of relevant national policies to provide reasonable suggestions for further research,also give corresponding theoretical support.In this paper,data are taken from Chinese industrial enterprise database of the National Bureau of statistics in 2004-2009,according to the national industries classification(classification of national economic industries in accordance with the 2 digit code for the industry standard),the final choice are all enterprises in 30 manufacturing industry as the research object.This research method is mainly in Hsieh and Klenow(2009)to measure the misallocation of resources based model on the relaxation of the assumption of constant returns to scale,the elasticity of substitution of capital and labor is set by LP semi parametric estimation method;reference B.R.Uras model at the same time,capital investment will decompose the profit maximization model for manufacturers to make changes,and the marginal value of capital(MRPK)to measure this distortion on the basis of further deduced the loss model of total factor productivity,which makes the results more accurate;finally three virtual experimental design to calculate China’s true The distortion of the real capital market,the discreteness of the value of the marginal output of capital in the three cases and the loss degree of the total factor productivity in China’s manufacturing industry.Based on the data analysis,found that China capital market distortions undervalued to a great extent,this paper estimates the true distortion in capital market is about 3 times the calculation results of the HK model,at the same time in the study period of the data shows that China’s capital market distortions in increasing;however,due to the presence of endogenous financing and commercial credit share,capital market barriers,thereby reducing the level of enterprises facing the rental rate of capital distortions in a certain extent,such as the 2009 capital market distortion was 11.904,and enterprise level facing the distortion is only 4.145;in addition,this paper proves that three virtual experiment,if the enterprise is not through commercial credit and the capital financing,capital distortions will make our country manufacturing industry total factor productivity decreased 29.1%in 2009,was almost normal financing case(10.3%)of 3 times;business The continuous development of credit is the main reason for reducing the capital rent rate and promoting effective allocation of capital and improving total factor productivity.On the contrary,the role of endogenous financing in reducing capital market barriers and improving total factor productivity is decreasing year by year.According to the above conclusions,this paper puts forward corresponding suggestions:appropriate relax financing constraints of the manufacturing industry,deepening the reform of the tax system,increase tax cuts,the market continues to increase the main burden;to further promote the market-oriented reform of the financial system,open market,open government control of factor prices,reduce credit discrimination,but also necessary to increase the number of financing difficult,and high production efficiency of the enterprise policy support,appropriate to broaden the threshold for loans and financing of these enterprises;small and medium-sized enterprises should also improve their own level,identify market positioning,establish a good image of the enterprise credit,improve the financial management level,enhance their ability to obtain financial support from the outside,but also pay special attention to their own capital at last accumulation.The innovation of this paper is firstly on the financing structure and capital distortions conducted in-depth research,the capital investment(K)is divided into internal financing,external financing of commercial credit and capital markets,deduction and model formula,which is not related to other documents;secondly,the HK model some improvements were made,through the production function to change the manufacturers,to relax the hypothesis of constant returns to scale(α+β≠ 1),the use of capital marginal output value of alternative returns to measure the productivity of capital distortions and makes the results more accurate;finally,this paper calculates Chinese real capital distortions and do a comparison and distortion with the HK model,and design three virtual experiment,and three case of total factor productivity loss degree were compared.