Research On The Impact Of City Population Scale On Total Factor Productivity

China’s urbanization rate has greatly improved since the reform and opening up,China’s urbanization has stepped into an accelerated stage.In 2021,the urbanization rate of China’s permanent population has reached 64.72%,exceeding the world average level of 54.8%,but there is still big gap with developed countries.Chinese government has been increasing its research on urbanization development strategies recently.The 14 th Five-Year Plan and the draft outline of long-term objectives for 2035 put forward that urban renewal is an inevitable requirement to adapt to the new situation of urban development and promote highquality urban development.As an important component unit of a city,the development of enterprises not only promotes the urban economic development,but also is affected by the change of city scale Therefore,this paper focuses on the impact of city scale expansion on productivity of different enterprises.In this paper,3576 A-share listed companies in Shanghai and Shenzhen stock markets from 2009 to 2019 were selected as the research objects.Based on the financial data of enterprises,the total factor productivity(TFP)of enterprises was measured by using fixed effects method,Olly-Parks three-step semi-parametric estimation method and Levinson-Peterlin semi-parametric method.City scale(the number of permanent residents in the municipality)was taken as the main explanatory variable,TFP was taken as the explained variable.By building a fixed effect model of the relationship between city scale and TFP,this paper explores the impact of city scale expansion on TFP of enterprises of different types,different ownership,different regions and different industries,and selects six dimensions of business environment indicators as intermediary variables,and builds an intermediary effect model to analyze the impact path of city scale on TFP.The empirical results show that city size has a significant positive impact on total factor productivity.Compared with family firms,non-family firms are more strongly influenced by the city scale expansion.Non-state-owned enterprises are more significantly affected by city scale expansion.Compared with eastern regions,enterprises in central and western regions benefit more from the expansion of city scale.High-tech enterprises benefit more from the expansion of city scale.This paper also verifies the path that city scale expansion can promote TFP through the micro mechanism of agglomeration economy(sharing,matching and learning).The above empirical results pass the robustness test.Based on the research conclusions,this paper puts forward feasible policy suggestions for China’s urbanization development,coordinated development of various regions and urban construction from four aspects,including enhancing the participation of social capital and promoting new urbanization construction;Cities in different regions adopt different development strategies;Support and promote the high-quality development of high-tech enterprises;Deepen reforms to streamline administration,delegate powers,improve regulation,and strengthen services,and energize market entities.