Research On The Impact Of Agglomeration On Total Factor Productivity In Sichuan Province

Sichuan's manufacturing industry has continuously improved its development,its competitiveness has been continuously strengthened,and it has established an industrial system with a complete range of systems and a sound system,which has continuously strengthened its support to the national economy.It has occupied an important position in the southwest region and even the entire western region.However,Sichuan's manufacturing industry still has such issues as the match of output and input and the balance of its industrial structure while possessing relatively large volume and relative comparative advantage.How to promote the improvement of total factor productivity can improve the above problems.This article first sorts out related theories of industrial agglomeration and promotion of total factor productivity growth and literature at home and abroad.Based on this,it conducts research on 21 two-digit industries in Sichuan Province from 2004 to 2016,and conducts research on manufacturing in Sichuan Province.The degree of industrial agglomeration and total factor productivity in the two-digit industry were measured and analyzed.The agglomeration levels and location quotients were used to measure the level of industrial agglomeration,respectively.1)By analyzing the geographical concentration of 21 manufacturing industries in Sichuan Province in 2016,only the beverage manufacturing industry was at a high level of agglomeration and the pharmaceutical manufacturing industry was at a medium level.At the level of agglomeration,the rest of the industries are low concentration industries.2)By analyzing the 2016 specialization index of 21 manufacturing industries in Sichuan Province,there are 9 industries that exhibit comparative advantages,including not only resource-intensive industries(agricultural and sideline products manufacturing,beverage manufacturing,etc.),but also high-tech industries(medical manufacturing,special equipment manufacturing,etc.),and the potential for agglomeration of manufacturing industries in Sichuan is still huge.This article uses the DEA-Ma Imquist index to measure the total factor productivity growth of Sichuan's manufacturing industry.Overall,except for 2015,the total factor productivity of Sichuan's manufacturing industry is positive,with an average annual growth rate of 7.6%.Based on the calculation of the concentration degree of manufacturing industry and total factor productivity in Sichuan Province,an empirical analysis was conducted on the relationship between the two,the results show that the increase in the concentration of manufacturing industries in Sichuan Province can significantly promote the improvement of total factor productivity.This kind of promotion is achieved by improving the technical efficiency index.In order to verify whether the Williamson hypothesis emerged in Sichuan's manufacturing industry,we have divided 21 industries into low-level and middle-high-aggregation industries for regression analysis.The results showed that in both the low-level and medium-high concentration industries,the increase of the degree of manufacturing concentration can all promote the growth of total factor productivity,and it is achieved by acting on technical efficiency.In order to explore whether this conclusion is established in different industries,the manufacturing industry is divided into resource-intensive industries,labor-intensive industries,capital-intensive industries,and technology-intensive industries according to the factor density.It examines the relationship between industrial agglomeration and total factor productivity.The results show that,in addition to technology-intensive industries,the spillover effect of industrial agglomeration still exists in the other three groups of industries.Based on the above analysis and empirical test results,corresponding countermeasures and suggestions are proposed for the rational distribution and development of Sichuan's manufacturing industry.