Agglomeration Of Agricultural Product Processing Industry,Dynamic Evolution Of Enterprises And Growth Of County Total Factor Productivity In China

In recent years,the No.1 document of the Central Committee has repeatedly stressed the need to vigorously promote the development of county economy,give full play to the role of agricultural product processing industry in county economy,and keep the industrial chain in the countryside.At present,resource constraints are becoming tighter,environmental problems are becoming more serious,and the mode of production,which is dominated by factor input,is in urgent need of transformation.Against this background,it is especially important to improve the total factor productivity(TFP)of county agricultural products processing industry.There are many elements that influence the improvement of TFP in agricultural processing industry.On the one hand,the dynamic evolution process of enterprises is very important.In this process,the enterprises with higher TFP level enter the market,the enterprises with lower TFP level withdraw from the fierce market competition,and the enterprises in power further enhance their productivity in the competition,in addition,the resources of the exiting enterprises are redistributed,and the share of the enterprises with higher productivity in-office is increased,which promotes the improvement and enhancement of the overall TFP level of industries and regions;On the other hand,as a new form of industrial organization,the spatial agglomeration externality of agricultural product processing industry has greatly promoted TFP growth.In view of the central role of knowledge and technology in productivity growth,Marshall(1920),Jacobs(1969)and Porter(1990)proposed three kinds of aggregate externalities from different sources of knowledge spillovers,it is believed that agglomeration externalities can promote intra-industry and inter-industry collaboration and knowledge-experience sharing,and then promote regional and industry productivity growth.At the same time,the economic effect of agglomeration externalities will attract enterprises to enter,stimulate the innovation power of incumbent enterprises,eliminate inefficient enterprises,and have an impact on the productivity of industries and regions.Based on this,on the one hand,the paper explores how the agglomeration of agricultural product processing industry can promote the dynamic evolution of enterprises,and then enhance the industry and regional TFP perspective.On the other hand,the paper examines the mechanism of the externalities of the agglomeration of agricultural product processing industry in China’s counties and the effect of the agglomeration on the growth of TFP in industries and regions.In order to achieve the above research goal,the paper adopts micro-enterprise data.Firstly,on the basis of describing the development situation of China’s agricultural product processing industry,the EG index is used to measure the degree of industrial agglomeration,using LP method to measure enterprises TFP level,secondly,according to the theory of profit maximization,this paper constructs panel logit model,empirically tests the mechanism of agricultural product processing industry agglomeration on enterprises’ entry and exit behavior,finally,based on the perspective of enterprise evolution,the paper uses DOP framework to decompose the growth of TFP level of China’s agricultural product processing industry,and constructs a nonlinear panel regression model,by using the fixed effect estimation method,the paper further explores the specific mechanism of the three externalities of the agricultural product processing industry cluster influencing the TFP growth of the county through the enterprise dynamics,and finds out the sources of the TFP growth of the agricultural product processing industry,and put forward the corresponding countermeasures and suggestions.The main findings of the paper are:First,China’s agricultural product processing industry is developing rapidly,but its spatial distribution is unbalanced,which is characterized by "East-mississippi-sparse".Although the degree of agglomeration is not high,the agglomeration level of agricultural product processing industry is increasing.Similar to the trend of industrial agglomeration level,the Total factor productivity level is also in the process of continuous improvement,but the growth is slower.Secondly,there is an inverted "U" relationship between agri-product processing industry agglomeration and firm entry and firm growth,and a positive "u" relationship between agri-product processing industry agglomeration and firm exit.At present,the agglomeration of agricultural product processing industry is still in the primary stage of the evolution cycle of agglomeration,that is,the quantity expansion stage.Thirdly,the externality of specialization and diversification have the same influence path,which can promote the growth of TFP in the early stage of agglomeration,while the externality of competition has the opposite effect.When the concentration of agricultural product processing industry reaches a certain degree,the externality of specialization and diversification will hinder the growth of county Total factor productivity,and the positive effect of competitive externality will be strengthened.From the perspective of the agglomeration cycle of China’s county-level agricultural product processing industry,the present stage is still dominated by the positive effects of specialization and diversification externalities.Fourthly,specialization and diversification externalities promote the growth of enterprises,increase intra-group and inter-group effects,and promote the TFP growth of agricultural product processing industry.However,these two kinds of externalities have a negative impact on the entry and exit effects,which shows that they attract some inefficient enterprises to enter and hinder the exit of zombie enterprises,this has created some resistance to county Total factor productivity growth.