Research On The Impact Of Government Subsidy On Total Factor Productivity Of Enterprises

In the context of the new normal economy and the promotion of supply-side structural reform,the cultivation and development of strategic emerging industries are related to the transformation and upgrading of China’s industries,as well as to the optimization of economic structure,which is a major strategic choice conducive to China’s future economic development.As a financial industrial policy,subsidies from central or local governments are aimed at supporting the development of industries,making up for problems in industrial development,improving the productivity of enterprises,and leading the industry to mature.Therefore,studying the impact of government subsidies on the strategic emerging industry TFP will help to improve the path of strategic emerging industry TFP and promote the better development of strategic emerging industries.This paper takes listed companies in strategic emerging industries as the research object,and mainly studies the impact of government subsidies on TFP of Listed Companies in strategic emerging industries.First,through the comparison between different countries in the horizontal direction and the comparison of the status quo ofvertical industries in the past five years,the status quo of the development of strategic emerging industries and the status quo of subsidies are studied,and the main existing developments of strategic emerging industries in China are summarized.Then,this paper combines the above research with relevant theories,and makes a theoretical analysis of the relationship between government subsidy and enterprise TFP from three aspects: the impact of government subsidy on R&D investment,the impact of R&D investment on enterprise TFP and the mechanism of R&D investment as an intermediary variable,and puts forward four hypotheses of this paper.On this basis,it chooses Shanghai and Shenzhen A-share listed companies as strategic emerging industries.Fixed-effect model is selected as the research object,and the hypothesis is verified by mediation effect regression method.Two-stage least squares(2SLS),subsample regression and interaction effect analysis are used to test the stability of the empirical results,and the conclusion of this paper is drawn.Finally,the main problems raised in the current situation analysis and the results obtained in the empirical study are presented.The conclusions put forward countermeasures and suggestions to promote the future better development of strategic emerging industries in China.According to the theoretical and empirical research in this paper,the following conclusions are drawn:(1)At present,there are some problems in the development of strategic emerging industries in China,such as homogeneity of industries,lack of innovation and core technology,weak adaptability of production services and industrial development.These problems will eventually lead to an increase in government subsidies for strategic emerging industries,but they have not raised the embarrassing situation of corporate TFP.(2)Establish a two-way fixed-effects model and select a strategic emerging industry Shanghai-Shenzhen A-share listed company as a sample.Empirical analysis shows that government subsidies have an inhibitory effect on the TFP promotion of enterprises.The results are still robust no matter using two-stage least squares test or sub-sample test for subdividing industries.(3)Introducing the mediation effect model and selecting R&D expenditure as an intermediary variable for empirical research.It is found that the inhibition ofgovernment subsidies on corporate TFP is partly transmitted through R&D input.The mechanism of the intermediary effect is that government subsidies will have a negative impact on the promotion of corporate TFP.The key reason is that although government subsidies promote the R&D expenditure of enterprises,R&D expenditures fail to bring effective R&D and make enterprise R&D expenditures.It cannot be transformed into an increase in TFP,but will instead increase the negative effects of government subsidies on the total factor productivity of enterprises.Through data analysis,it can be calculated that the intermediary effect of R&D expenditure in intermediary variable enterprises accounts for 25.38% of the total effect.Combining the results of empirical analysis with the current situation study,the following four suggestions are put forward:(1)improving the screening mechanism and rationalizing the distribution of industries;(2)strengthening the supervision system and strengthening the process supervision;(3)improving the subsidy standards and promoting effective innovation;(4)strengthening the adaptability of production services and industrial development,and improving the conversion rate of product market.