Open To The Public、Upgrading The Industrial Structure And Total Factor Productivity

The dynamics of China’s economic development have shifted from "rough" development,which relies on labor and capital inputs,to a stage of high-quality development,which relies more on total factor productivity improvement.As one of the new development concepts,opening up to the outside world plays a key role in improving the current total factor productivity and accomplishing the goal of high-quality economic development.At present,China’s economy has entered the stage of high-quality development,and it is necessary to use the new development concept to guide economic development and realize the transformation of economic development to total factor productivity-driven.However,in terms of industrial structure transformation,structural contradictions and overcapacity coexist and distorted factor allocation bring hidden dangers to the sustainable and healthy development of the economy,while in the general environment of economic globalization,import and export trade and economic cooperation and exchange have accelerated the spillover of technological knowledge,and foreign direct investment and import and export trade have brought about technology diffusion and promoted industrial structure adjustment.Therefore,in view of the above perspectives,this paper comprehensively explores the impact of foreign opening and industrial structure upgrading on total factor productivity,which is of certain importance to China’s pulling forward high-quality economic development.This paper examines the impact of opening up to the outside world on total factor productivity and also clarifies the mechanism of industrial structure upgrading in this relationship,using both theoretical and empirical approaches,such as principal component analysis and mediating effects.Theoretically,the total factor productivity of 267 prefecture-level cities in China from 2006 to 2019 is first measured and analyzed using the DEA data envelope method.Subsequently,the theoretical aspect analyzes the mechanism of the role of industrial structure upgrading and analyzes the current situation from both the national overall and the four major regions.The preliminary study found that due to the development and changes of domestic and international situations and the domestic insistence on implementing the strategy of expanding domestic demand,China’s foreign trade dependence and capital dependence have been slowly declining within a certain range;the industrial structure upgrading in the eastern region has been higher than the remaining three regions as well as the The industrial structure index in the eastern region has been higher than the other three regions and the national level.In terms of empirical tests,the results of the double fixed effects model show that openness to the outside world,human capital,road area per capital,fiscal expenditure and urbanization rate all contribute significantly to the improvement of total factor productivity.Further heterogeneity tests reveal that openness to the outside world has no significant effect on total factor productivity in Northeast China,and also has no significant effect on small and medium-sized cities.The endogeneity test and robustness test prove the robustness of the above findings.Using the intermediary effect to introduce industrial structure upgrading into the analytical framework to analyze its specific mechanism of action,it is clear that industrial structure upgrading plays a partly intermediary role in the relationship between opening up to the outside world and total factor productivity.Finally,based on the theoretical analysis and empirical results,this paper puts forward targeted suggestions on the rational formulation of the opening-up policy and the optimization of industrial structure.