A Study On The Impact Of Local Government Intervention On Total Factor Productivity In Service Industry

With the disappearance of population dividend and the decline of marginal reward,it is difficult to continue the extensive development of promoting economic growth by simply relying on the input of factors.Since 2008,the Pan-Yangtze River Delta region,which is dominated by 41 cities in Jiangsu,Zhejiang,Shanghai and Anhui,has made great efforts to transform the economic development mode and vigorously develop the service industry.It has made remarkable achievements,not only promoted economic growth,but also created more jobs,easing the pressure on employment.Modern service industry is the main growth point of the sustainable development of national economy in the period of building a well-off society in an all-round way.According to Kuznets Law and Engel's Law,the factors of production continue to gather into the service industry,if this leads to the optimization and upgrading of the industrial structureand,the total factor productivity should show a rising trend.But we found that the upward trend is not obvious by DEA calculation.Under this background,it is particularly important to study the factors affecting the total factor productivity of the service industry in the Pan-Yangtze River Delta region.The government has introduced a series of regulations in recent years to promote the development of the service industry.The guidance of the government's industrial policy is the vane of the economy,which can be expected to form a good prospect for the transfer of factors,and attract the resources of other industries,such as labor force,capital,and so on,to continuously gather in the service industry.With the deepening of the degree of factor agglomeration,scale effect gradually vanishes,congestion effect begins to appear.Resource allocation efficiency is low,labor force,land,technology,capital and other factors of production mismatch problem is serious.In this way,it will lead to price distortion,lack of innovation,waste of resources and environmental pollution,which will inevitably restrain the development of total factor productivity in the service industry.More seriously,it will have a negative impact on Chinese entire economic system.This paper selects the panel data of 41 cities in Jiangsu,Zhejiang,Shanghai and Anhui from 2008 to 2017,takes the government's subjective intervention intensity as the core explanatory variable,and uses factor aggregation as the intermediary factorto empirically study the impact of government intervention on the total factor productivity of the service industry.At the same time,the nonlinear relationship between the two is further verified by the panel threshold model.The regression results show that the government intervention and the service industry's total factor productivity show a significant "inverted U" relationship.That is,as the intensity of government intervention increases,the concentration of factors deepens,there is a scale effect,which promotes TFP;When the optimum strength is exceeded,the crowding effect of factor aggregation appear,and the resource allocation efficiency is low,thus suppressing the improvement of TFP.Then,through the heterogeneity test,the three provinces of Jiangsu,Zhejiang and Anhui are regressed.The results of the block study are different from the whole.The local government intervention intensity in Anhui Province is not related to the service industry TFP.The results of Jiangsu and Zhejiang regression are consistent with the whole.Regarding the control variables,the second item of intellectual property protection intensity is added,and it is found that it also has an "inverted U" relationship with TFP;the level of foreign direct investment and the level of infrastructure construction have a significant positive relationship with TFP.Finally,a series of recommendations are made for the empirical results.Appropriate government intervention combined with market regulation;appropriately improve the intensity of intellectual property protection,improve the efficiency of the service industry,promote deep integration and benign interaction among the three major industries,and vigorously develop high-end modern service industries;actively introduce high-quality service industry foreign-funded enterprises and strengthen the level of infrastructure construction and education level;coordinate regional development,strengthen cooperation,add a modern service industry agglomeration demonstration zone,and narrow the economic development gap,so as to better improve the total factor productivity of the service industry in the Pan-Yangtze River Delta region.