Research On The Impact Of Factor Market Integration On Total Factor Productivity

Since the reform and opening up,Chinese economy has gradually realized a comprehensive transformation from a planned economy to a market economy,whose essence is the process of continuous improvement of market resource allocation mechanism and efficiency.However,for a long time,China's rapid economic growth has been maintained on the basis of a low-cost factor-driven model.China's economy is facing a critical period of continuation and conversion between the new and the old kinetic energy,the social economic system is also facing new growth constraints.In this context,improving the marketization of factors,the efficiency of resource allocation,and the level of technological progress will be the key work in the present and future period.Therefore,exploring the development status of factor market integration and the change law of total factor productivity in China,and analyzing the inherent relationship between factor market integration and total factor productivity,will have important theoretical and practical significance for lifting the constraints of factor market development and realizing the conversion of economic growth power.Based on the above analysis,in order to test the effect and mechanism of factor market integration on total factor productivity,this paper firstly uses a political economic analysis method to sort out related issues systematically.Based on Marx's market theory and relevant assertions about the law of average profit and production price,discussing the important role of the free flow of factors and the improvement of the market mechanism to promote factor market integration.At the same time,using western economics and Marxist political economics related theories to trace the source of total factor productivity and exploring its internal logic.On this basis,this paper proposes the impact mechanism of factor market integration on total factor productivity,reasoning from market competition and spillover bonus respectively.Secondly,this article tests the above theoretical analysis in the empirical part.The “relative price index method” and the DEA-Malmquist index model are used to measure and analyze factor market integration and total factor productivity.The measurement results show that national factor market integration has experienced several large fluctuations since the reform and opening up,but the whole factor market has not shown a trend of integration.China's total factor productivity has shown a positive increase,but its growth rate has shown a significant downward trend.This paper uses a fixed effect model and a spatial econometric model to conduct an empirical analysis of panel data in 28 provinces in China from 1979 to 2017.The results show that: firstly,factor market integration is conducive to the improvement of total factor productivity.Secondly,after introducing spatial correlation analysis,the results show that there is a positive spatial agglomeration effect of total factor productivity among regions in China.Thirdly,the impact of factor market integration on total factor productivity shows significant temporal and spatial heterogeneity.The total factor productivity in the four regions and in different periods shows a significant positive spatial agglomeration effect.However,from spatial perspective,the promotion effect of factor market integration on total factor productivity is only significant in the east,west,and northeast regions,and the relationship between factor market integration and total factor productivity is not significant in the later stage.Through theoretical and empirical analysis,this paper not only conducts a systematic political economic analysis of factor market integration and total factor productivity,but also innovates the measurement methods of related indicators.This paper tried to study total factor productivity from the perspective of factor market integration.In response to the above research conclusions,this article proposes the following related policy recommendations.The relationship between the government and the market should be properly handled.It is supposed to speed up the improvement of China's factor market and innovation-driven development mechanism.By eliminating the differences of institutional barriers and technical conditions that hinder the free flow of factor resources between regions,the sustainable and stable development of the regional economy will be achieved.