Research On The Impact Of Factor Price Distortion On Manufacturing Transformation And Upgrading

The report of the 19th National Congress of the Communist Party of China pointed out that China's economy has shifted from a high-speed growth stage to a high-quality development stage.It is in the process of transforming the development mode,optimizing the economic structure,and transforming the growth momentum.Building a modern economic system is an urgent requirement to cross the border and the strategic goal of China's development.To build a modern economic system,we must focus on the development of the economy in the real economy,accelerate the construction of manufacturing power,accelerate the development of advanced manufacturing,promote the deep integration of the Internet,big data,artificial intelligence and the real economy,and enhance the international competitiveness of manufacturing.Manufacturing is the main body of the real economy and the support of the national economy.To achieve high-quality development of the national economy,the manufacturing industry is first required to transform and upgrade through transformation of development methods.Since the reform and opening up,China's manufacturing industry has developed rapidly with abundant factor supply,low production cost,broad consumer market and advanced technology-It has become the world,s largest manufacturing country and a major exporter of manufactured goods."Made in China" has become an important label for China on the world stage.However,we must also clearly understand that China's manufacturing industry is large but not strong and refined,and is faced with multiple factors at home and abroad.From the domestic perspective,in recent years,China's economic development has entered a"new normal",the downward pressure on the real economy has increased,factor prices have continued to rise,and environmental regulations have become increasingly strict.From an international perspective,in order to cope with the challenges of the new industrial revolution,developed countries have implemented the"re-industrialization”strategy to attract the high-end links in the manufacturing industry.Developing countries are attracting low-end manufacturing industries with the low-cost advantage of factors and the“environmental pollution paradise"."Made in China"faces a double extrusion.China's manufacturing industry urgently needs to go out of the extensive development model through transformation and upgrading,and enter a new stage of high-end,high-efficiency,green and innovative development.This paper studies the impact of factor price distortion on the transformation and upgrading of manufacturing industry from the perspectives of technological advancement bias and capital deepening.Firstly,we used the panel data of China's manufacturing industry in 1988-2015,the production function of the manufacturing industry was estimated by the standardized supply surface system,and the manufacturing transformation and upgrading evaluation system was constructed from the two dimensions of rationalization and high-level.It sorts out the mechanism of factor price distortion,technological progress bias,capital deepening and manufacturing transformation and upgrading,and measures them.After research,it is found that China's factor price distortion is widespread,and the capital negative distortion is relatively higher.The overall technological progress is biased towards capital,the growth rate of total factor productivity is relatively stable,and the transformation and upgrading of manufacturing industry has achieved certain results.However,the negative distortion of factors and the mismatch of technological progress and the endowment of manufacturing factors in China have inhibited the improvement of innovation efficiency and manufacturing transformation.Finally,the paper continues to explore the impact of factor price distortion,technological progress bias,capital deepening on the transformation and upgrading of manufacturing,and empirically test the relationship between them.The results of the study show that although the negative distortion of factor prices will drive the scale expansion of the manufacturing industry to a certain extent,it will inhibit the transformation and upgrading of the manufacturing industry in the long run.In the case of negative distortion of capital and labor market,if the relative distortion of capital is higher,the distortion of factor price will inhibit the transformation and upgrading of manufacturing industry.During the transition period,there are factor price distortions in China's factor market.Because the negative distortion of capital is more serious,the deepening of capital caused by this is not conducive to the transformation and upgrading of manufacturing.It can be seen from the conclusions of this paper that in order to promote the transformation and upgrading of China's manufacturing industry,we should gradually deepen the reform of factor marketization,relax the pricing power of factors,build a fair competitive market environment,strengthen intellectual property protection,and encourage enterprises to innovate according to local conditions.At the same time,it is necessary to increase the added value of labor,create a"talent dividend",fundamentally improve the level of innovation capability,guide the rational flow of capital,avoid the"flocking"of capital,and insist on reasonable regulation of capital surplus industries.