Resource Misallocations Of Industrial Enterprises In China

After the subprime crisis,the Chinese economy has come to a turning point.In this perticular moment,how to achieve the sustainability of economic growth have become an important issue for both economists and politicians.From the experience of other countries,Total Factor Productivity(hereinafter referred to as "TFP")is a key concept to understand sustainable growth.And to see from China's own history,the TFP has not kept pace with the rapid economic growth.Why the TFP is so low while the GDP grows so fast?"resource misallocation" is a good perspective to understand this problem,and led us thinking about the sustainablility of Chinese economic growth.Therefore,this article calculates the TFP and level of resourse misallocation,and try to reason how the resourse misallocation is taken shaped in Chinese industrial enterprise,and provides feasible advice and policies to correct resource misallocations.First,this article calculated the TFP and resource misallocation based on Aoki's general accounting production function model.It shows that the average propotion of resource misallocation to TFP losses is 24.92%from 1998-2013.the propotion of capital misallocation of resource misallocation overall is 93.46%,while the propotion of misallocation in labor is only 6.44%.The misallocation in capital is the most essential component of the resource misallocation in Chinese industrial enterprises.From the result of the Syrquin decomposition,the growth in Chinese industrial enterprises is still mainly driving by inputing resource,especially capital inputing.It implies that the characteristics of resource allocation is still "strong capital,weak labor".And the industrial enterprises still have a lot of room for growth through resource resets.Next,to understand the influencing mechanism of resource misallocation,this article analyzed how the resource misallocation is taken shaped from three different perspectives:biased technological progress,credit discrimination and incomplete market competition.In Chapter 4,this article constructed a transcendental model and a stochastic frontier analysis to calculate resourse misallocation including biased technological progress.The results show that the influence of biased technological progress on resourse misallocation varies among different factor agglomeration industries.In capital-intensive industries,the bias of technological progress toward resource misallocation is more manifested as a cost saving effect;in labor-intensive industries,the bias of technological progress intensifies resource misallocation through technology dependence effects.This provides an explanation for the emergence of "price distortion-resource misallocation" deviations in manufacturing.It also provides new evidence for understanding the solidification and trend characteristics of misallocation in the industrial enterprises.At the same time,the share of state-owned economy is significantly positively related to the cost share loss of resource misallocation,and the political dividend of state-owned enterprises is also an important factor affecting resource misallocation.In Chapter 5,this paper analyzed the impact of credit discrimination.First,based on the HK model,the practical causal effect of credit discrimination on the misallcation of internal and inter-firm resource was demonstrated mathematically.Based on the panel model,the two dimensions of intra-enterprise and inter-enterprise misallocation were tested based on the panel model to test the increase in credit discrimination.The conclusion confirms that credit misallocation is indeed an important factor in the formation of resource misallocation in Chinese industrial enterprises.The widespread credit discrimination based on differences in ownership has caused relatively scarce corporate capital and the accumulation of credit capital into inefficient units,which has led to the continued accumulation of capital misallocation in the industrial enterprises.However,there are typical "non-linear" influence characteristics between credit discrimination and resource misallocation.The realization of enterprise scale,technological progress and R&D,and government subsidies can pass to a certain extent.Easing corporate financing constraints and reducing the impact of credit discrimination on resource misallocation.The improvement of corporate profitability and the endowment ofbasic factors are also directly related to the misallocation of resources.This means that the key to promoting the replacement of resource is focused on the establishment of a fair financing environment such as diversification of credit models and adequate informationization of credit markets.In Chapter 6,considering that improper government intervention and incomplete market competition are important reasons for resource misallocation,this article examines the market environment,the entry and exit of enterprises,and the implementation of government industrial policies on the industrial enterprises from the perspective of incomplete market competition.The conclusions show that both labor misallocation and capital misallocation are significantly negatively related to the industry variable degree of industry's competitive market conditions.The fierce market competition has increased the survival pressure of enterprises,which has resulted in more zombie companies and intensified resource misallocation.The industry entry and exit thresholds are significantly negatively related to resource misallocation,which means that the benign market selection mechanism constructed by more enterprises entering and eliminating more companies can indeed effectively correct the resource misallocation.The industrial policy,measured by the proportion of the output value of enterprises in the central and western regions,has a significant positive impact on the misallocation of capital,which indicates that the simple concentration of resources into the central and western regions is actually a process of reverse capital allocation.The proportion of state-owned enterprises is significantly positively related to resource misallocation,indicating that the higher the share of state-owned enterprises,the more severe the resource misallocation in the industry,the"soft budget constraints" of state-owned enterprises,the monopolistic market advantage position,and political dividends,which usually make it possible to easier access to cheap credit,relatively abundant rations of land and raw materials,and invalid incentive constraints due to unclear property rights have led to state-owned enterprises' neglect of resource allocation efficiency and aggravation of resource misallocation.Finally,based on the analyses above,this article provides feasible advice and policies including:breaking ownership discrimination;promoting reform of the resource market;adjusted industrial policies;strengthening the protection of property rights;integrating the entry and exit mechanism.