The Influence Of R&D And Labor Quality On TFP Of Chinese Enterprises

Since the reform and opening up,the Chinese economy has achieved remarkable success in the past few decades,relaying on adequate and inexpensive labor resources and high investment and export-oriented development models.However,as China's investment has reached its limit,the proportion of consumption has dropped rather than risen.Obviously,this pattern of development is unable to bring sustained high-quality growth to China's economy.Raising Total Factor Productivity(TFP)has become a major factor in economic development.The starting point of this paper is how to improve TFP of enterprises effectively.As an important factor which influences enterprise TFP,the effect mechanism and influence level of R&D investment and labor quality is the study focus of this article.This paper uses the micro database of China's industrial enterprises from 2005 to 2007 to study the effect of labor quality and R&D investment on the TFP of companies by establishing a fixed effect model.At the same time,taking into account the heterogeneity of the company,on the basis of benchmarking,this paper groups and analyzes the company's exports,ownership,capital intensity,and region.The results show that the labor quality and R&D investment have a significant positive effect on the TFP of enterprises.However,after grouping companies,the impact of labor quality and R&D investment on different groups of companies shows different results.Among them,the export companies' R&D efficiency is slightly insufficient.Labor quality and R&D investment have a positive effect on the performance of domestic-funded enterprises,while the R&D effectiveness of foreign-funded enterprises is negative.The role of labor quality plays a greater role in labor-intensive enterprises,and the impact of R&D investment on the productivity of capital-intensive enterprises is not significant.The eastern region is significantly superior to the western region in R&D innovation.The conclusion of this paper shows that labor quality and R&D investment have a positive effect on the total factor productivity of companies.Enterprises to improve the quality of the workforce and increase research and development efforts can effectively improve the company's own productivity.Meanwhile,the government should also increase its policy support and continue to encourage enterprises to choose R&D innovations to improve the enterprise strength of the entire country.