The Effect Of Government Subsidies On Total Factor Productivity Of Military Enterprises

Along with the advancement of science and technology and the acceleration of economic globalization,the wave of military transformation in various countries has become increasingly fierce.The national defense science and technology industry has begun to achieve strategic transformation in the increasingly competitive high-tech field.As a country's strategic industry,the national defense military enterprise is the foundation of a country's military industry,and it is also the main symbol and fundamental guarantee for a country's national defense modernization.Its level of innovation is an important indicator of a country's comprehensive national strength and core competitiveness.As a mainstay of innovation,enterprises must provide a favorable environment for innovation.Due to the influence of national industrial policy trends,the amount of subsidies for military enterprises ranks first in all major industries,but whether such huge financial support can promote the technological progress of military enterprises is a topic worth exploring.In this paper,we use the literature inductive analysis method and the empirical research method to propose relevant hypotheses and construct regression models through literature combing and related basic theoretical research,and then match the historical evolution data of the military enterprises in the three-line construction period with the Chinese industrial enterprise database.Finally,the unbalanced panel data of 774 military industrial enterprises were obtained.The OP method and the LP method were used to calculate the total factor productivity of the military enterprises at the micro level in 1998-2007,and the effect of government subsidies on the total factor productivity of military enterprises and microcosmics.The mechanism of action has been systematically discussed and theoretically analyzed,and the mediation effect model has been further applied to reveal the important ways for government subsidies to curb the efficiency improvement of military enterprises.In empirical research,using the panel fixed effect,the systematic GMM estimation method and the Heckman two-stage method to test,the empirical results of the total effect show that: overall,government subsidies hinder the improvement of the total factor productivity of military enterprises.The empirical test of the mechanism found that government subsidies would make the subsidized enterprises lack the motivation for technological progress by increasing the rent-seeking activities and market concentration of enterprises,thus hindering the improvement of the total factor productivity level of military enterprises.Although innovation performance can significantly promote the improvement of total factor productivity of military enterprises,it does not play a mediating role in the productivity of government subsidized monthly military enterprises.The reason is that the increase of government subsidies tends to make military enterprises form policy dependence and restrain them.The enthusiasm for participating in market competition is not conducive to the improvement of the innovation capability of military enterprises.Therefore,the negative effects of government subsidies should be given full attention.Based on the above conclusions,this paper puts forward the following policy recommendations: first,prudently implement large-scale subsidy policy,improve the screening mechanism of subsidized objects;second,reform the evaluation and evaluation mechanism of science and technology to ensure the effective use of subsidized funds;third,explore the establishment of the withdrawal mechanism of government subsidies and the credit mechanism of enterprise scientific and technological innovation.Fourthly,we should improve the information disclosure system of military enterprises and pay attention to the "subsidy seeking" behavior of enterprises.