Resource Misallocate And Efficiency Loss Of Manufacturing Industries

After a rapid development of society,the economic growth of China slows down and downward pressure increases.It is urgent to find brand-new growth points and improve the overall production efficiency.Total factor productivity(TFP)is an important tool to study the growth of an economy,which to a large extent determines the gap between rich and poor among regions or countries.Industry is the main driving power of China's economy,and manufacturing industry is the backbone of it.Therefore,it is of great significance to study the resource mismatch among manufacturing industries and to what extent it affects the total factor productivity for the development of the overall industrial economy.This paper first introduces the background and significance of the research,and reviews the previous research results.Through the combination of theoretical and empirical analysis,it studies the degree of resource misallocation between manufacturing industries and its impact on output efficiency.Meanwhile,this paper also studies how much production efficiency can be increased if this misallocation is improved.Different from the previous studies,the object of this paper is the resource misallocation between manufacturing industries and its impact on TFP.In the empirical part,we use Aoki(2012)model for reference,and then apply it to the data of China's industrial enterprises after proper deformation,to calculate the relative distortion of factors,the degree of efficiency loss and the potential TFP value.In the part of regression analysis,we further test the relationship between misallocation and efficiency at the level of three-digit segmentation industry.Finally,we summarize the conclusion and put forward policy recommendations.Through empirical calculation,we find that the resource mismatch among manufacturing industries in China is extremely severe,though the situation among industries is different.The results show that the capital mismatch effect reduces 3.2% of total output(or TFP)on average and the labor mismatch effect decreases 4.3% on average.Further regression analysis results show that: the degree of industry factor distortion will affect the efficiency of resource allocation,thus further affecting the total factor productivity;higher industry concentration is conducive to improving productivity;the more state-owned enterprises there are in an industry,the more capital and labor may be invested in the industry due to policy reasons,which is not conducive to the overall efficiency;the resource mismatch of enterprises in the central and western regions seems to have no obvious effect on TFP;higher exit rate of enterprises in the industry may lead to lower overall efficiency;industries that create more jobs are more efficient.