Research On Heterogeneity Of Industrial Agglomeration On Total Factor Productivity Of Enterprises

Industrial agglomeration is a common phenomenon accompanying the process of economic development.The spatial concentration of the same type of enterprises not only promotes information and knowledge sharing,external economies of scale and other factors,but also reduces the cost of production and improves the production efficiency of enterprises.At the same time,competition and overflow elements of market information and product technology could lead to more intense competition.Therefore,the academic community has conducted long-term and in-depth research on the mechanism of industrial agglomeration on the role of enterprises and the impact on corporate performance.However,the existing literature on the industrial agglomeration effect rarely pays attention to the heterogeneity of enterprises,that is,whether there is a difference in the influence and mechanism of agglomeration on different enterprises.From the experience point of view,the performance of enterprises in agglomeration is very different.From the dynamic point of view,the location and exit of enterprises are also affected by the heterogeneity of the agglomeration effect.In view of this,this paper explores the heterogeneity of the impact of industrial agglomeration on enterprises from an empirical perspective.Based on the 1998-2007 China Industrial Enterprise Database and prefecture-level city economic data,we examine the impact of industrial agglomeration on the total factor productivity of different types of enterprises and enterprises of different scales at the micro level of the enterprise.Firstly,this paper uses the OP method to calculate the TFP of the micro-enterprise.On this basis,we match the urban economic data,calculates the industry agglomeration index at the prefecture-level city level,and construct the panel data of the enterprise-city-industry level.Then through the fixed effect model,we empirically test the relationship between the total factor productivity of enterprises and the degree of regional industrial agglomeration,and study the heterogeneity of industrial agglomeration effects on different agglomeration levels,different ownership enterprises,and enterprises of different scales,and explore the mechanism behind it.The empirical results of this paper find that:(1)Industrial agglomeration significantly promotes the growth of total factor productivity of manufacturing enterprises.Overall,there is a significant positive correlation between spatial agglomeration in manufacturing and total factor productivity growth.The same companies are expected to achieve higher productivity than other regions in areas with higher levels of agglomeration.(2)The influence of industrial agglomeration on the productivity of different ownership enterprises is different.Industrial agglomeration has the most significant impact on the productivity growth of private enterprises.It also has a significant effect on the productivity of Hong Kong,Macao,Taiwan and foreigninvested enterprises,but the impact on state-owned enterprises is not significant.(3)The impact of industrial agglomeration on the productivity of enterprises of different scales is different.Large-scale enterprises are more likely to benefit from industrial agglomeration,and the degree of agglomeration can promote the improvement of total factor productivity of large enterprises,while the TFP increase of small enterprises in agglomeration is not significant.Based on the above findings,this paper gives policy recommendations from three aspects: rational adjustment of enterprise layout,promotion of moderate agglomeration,formulation of effective subsidy policies,support for small and medium-sized enterprises,encouragement of coordinated development of enterprises,and mobilization of market vitality.Based on the existing literature,the research of this paper further explores the heterogeneity of the impact of industrial agglomeration on enterprises,enriches the research on industrial agglomeration,deepens the understanding of industrial agglomeration on the mechanism of enterprise,and also the policy of regional industrial agglomeration.The refinement provides theoretical basis and reference.