The Influence Of Capital Misallocation On Manufacturing Enterprise Productivity In China

China is in a critical period of economic transformation,which economic growth slowed down,growth momentum facing conversion.Vigorously promoting the supply side structural reform,improving the allocation of elements structure,enhancing the efficiency of factor allocation are important directions to promote economic growth and upgrading.Capital as a key factor occupy an important position in the production activities of enterprises.The degree of capital misallocation is directly related to the cost of corporate finance,which in turn affects the allocation efficiency of capital between enterprises,thus affecting the productivity.In fact,the capital market in China has serious "ownership discrimination" and "scale discrimination" problem.The allocation of capital deviates from the efficiency of enterprise,and the problem of capital misallocation is very serious.This paper mainly analyzes the influence of capital misallocation on the productivity of enterprises.Based on the literatures of capital misallocation and productivity,this paper constructs a theoretical framework of capital misallocation affecting enterprise productivity and puts forward some hypothesis.Then we use the micro-data of Chinese industrial enterprises from 1998 to 2007 to calculate the relative revenue productivity and capital misallocation degree of the enterprises,and analyze the relationship between them.On this basis,this paper further analyzes the different influences of capital misallocation on relative revenue productivity between different ownership enterprises,and examines in details the differences influence of capital misallocation on relative revenue productivity between different enterprise scale within ownership.The main conclusions of this paper are as follows:(1)The financing cost of state-owned enterprises is lower than that of non-state enterprises,but relative income productivity of non-state enterprises are far higher than those of state-owned enterprises.Capital allocation is not based on the principle of efficiency.There is a serious "ownership discrimination" problem in the field of capital allocation.(2)The existence of capital misallocation expands the difference of enterprise productivity,leading to the loss of overall economic efficiency.(3)The productivity of non-state-owned enterprises is more sensitive to the capital misallocation than the state-owned enterprises,and the loss of non-state-owned enterprises productivity caused by capital misallocation is greater than that of state-owned enterprises.(4)The enterprises scale is an important factor affecting capital misallocation,but the influences on productivity of state-owned enterprises and non-state-owned are different.The impact of capital misallocation on the productivity is similar for different enterprises scale within the state-owned enterprises.Relaxing financing constraints have little effect on improving the overall efficiency of state-owned enterprises.However,the impact of capital misallocation on productivity is different for different enterprises scale within the non-state-owned enterprises.The relative revenue productivity of small and medium-sized enterprises is more sensitive to capital misallocation,and relaxing financing constraints can greatly promote the productivity of small and medium-sized enterprises.