Expansion And Application Of Time-varying Elasticity Production Function Model From The Spatial Perspective

Supply-side structural reform can solve China’s structural problems in a targeted manner,and it is also an effective way to successfully achieve high-quality economic development across the key period.Input-output is an important part of the supply-side,and the production function is used as the main mathematical research for input-output.Tools not only have a typical factual basis but also can express economic relations intuitively,so they are indispensable in the study of economic issues.The mainstream production function is based on the empirical facts of economic stability in developed countries and strictly assumes that the elasticity of factor output is stable.From the perspective of factor income share,China’s “U”-shaped labor income share feature negates this assumption.Therefore,it is necessary to innovate and modify the production function model to accurately analyze China’s economic problems.Based on the existing time-varying elasticity production function model research,this paper incorporates the changes in factor endowments,regional differences,and regional economic relevance,expands the panel time-varying elasticity production function model and the spatial lag time-varying elasticity production function model,and compares them on this basis.Analysis of economic issues.Based on the estimated results of the panel time-varying elasticity production function,analyze the evolution of labor income share from the perspective of factor endowment and technological progress bias combined with a threshold model;use the spatially lagging time-varying elasticity production function to measure total factor productivity and analyze economic growth dynamics.The research conclusions are as follows:First,before 1992,China’s factor output elasticity fluctuated significantly between regions and as a whole.After 1992,the labor output elasticity showed a long-term decline,and the capital output elasticity increased for a long time;starting in 2012 The labor output elasticity has increased slightly,while the capital output elasticity is the opposite.There are differences in the factor output elasticity between regions.During 1978-2017,the labor output elasticity between regions changed from the largest to the smallest among regions;The largest output elasticity has become the smallest among regions,indicating that since the reform and opening-up,China’s capital factors have gradually shifted from the west to the east;the output elasticity of factors in various regions have shown convergence characteristics.Second,the labor income share presents a “U” shape to factor endowments.The “inverted U” effect of factor endowments on technological progress determines the “U” shape of the labor income share,with an inflection point value of 57,500 yuan;Some provinces have not crossed the threshold,and the labor income share has risen significantly.Third,based on the results of total factor productivity based on the spatially lagging time-varying elasticity production function,the total factor productivity growth rate has generally declined since 1993 and has risen slightly since 2015,but the growth rate has been relatively low.At this stage,the central and eastern regions have the highest contribution rate of total factor productivity in the four major regions,followed by the central and western regions,and the total factor productivity contribution rate of the northeast region is negative;the four regional capital factors still have a large driving force for the economy,The labor factor has the least pulling effect.