Research On The Improvement Effect Of The Establishment Of Free Trade Zone On The Mismatch Of Manufacturing Resources

Since the establishment of Shanghai Pilot Free Trade Zone on September 29,2013,18 Pilot Free Trade Zone have been set up in China.As a multi-functional special economic zone set up in China with preferential tax and special customs supervision policies as the main means and trade liberalization and facilitation as the main purpose,the Pilot Free Trade Zone is an important carrier for China to deepen reform and expand its opening up,integrate deeply into economic globalization and build China’s trade upgrading under the new situation.After continuous exploration,the construction of China’s Pilot Free Trade Zone has basically formed the coordinated development of the east,middle and west,and the overall opening of the coastal inland.In the future,the construction of the PFTZ will adhere to the "first try",continue to explore new growth paths through the reform of the trade,investment,finance and administrative management system,form a new system that can be replicated and popularized,promote the transformation of government functions,the transformation of trade structure and the improvement of the efficiency of the integration and allocation of resources,and finally realize the promotion of reform,innovation and development development.The influence of resource allocation on economic development has always been a hot topic in the field of economics.Any economic phenomenon and economic law will eventually be attributed to the optimal combination of resources.Compared with other economic fields,resource endowment is more related to trade.Classical trade theory has long pointed out that under the condition of free trade,the factor resources of each trade participant can be allocated effectively.However,in reality,the assumption of complete factor market information and complete market is too idealized,coupled with China’s long-term planned economy system and special administrative arrangements,which leads to the widespread distortion of China’s factor market.In view of this,the report of the Nineteenth National Congress of the Party clearly pointed out that "the market can play a decisive role in the allocation of resources,better play the role of the government,and develop a higher level of open economy".So,as a major measure for China to deepen reform and expand its opening up in an all-round way,the PFTZ,by taking the lead in boldly trying the new economic system and management system,continues to promote regional economic growth.Has it significantly improved the allocation of resources in China?This is exactly the concern of this paper.From the literature at home and abroad,most of the theoretical and practical attention to the PFTZ is focused on the impact of the establishment of PFTZ on investment,trade,technological innovation,industrial structure upgrading and economic growth.A few literatures have made empirical research on the degree of resource mismatch,and only focus on whether the allocation of traditional factors of production,such as labor force and capital,is effective.Since the 18th National Congress of the Communist Party of China put forward the implementation of the innovation-driven strategy,people have also been very concerned about whether there is a mismatch in R&D resources in our country at the present stage,and how much the mismatch of R&D resources has affected the Chinese economy and so on.Because this is directly related to the exploration and excavation of the new power of economic growth in China.Therefore,based on the existing literature,this paper first makes a systematic theoretical analysis of the influence mechanism of the construction of PFTZ on the resource allocation of manufacturing industry(especially high-tech manufacturing)in various regions,and the construction of PFTZ on the possible transmission path of economic growth.At the same time,R&D resources such as personnel input and R&D investment are introduced into the classical resource mismatch analysis framework in order to analyze the degree of resource mismatch,including labor,capital and R&D resources.Then,based on the actual calculation of the degree of resource mismatch in the manufacturing industry(especially the high-tech manufacturing industry)in various provinces and regions,through the construction of double difference model and intermediary effect model,The improvement of resource mismatch in manufacturing industry,especially high-tech manufacturing industry,is systematically analyzed.Finally,the corresponding policy recommendations are put forward.Based on the above research ideas,this paper is divided into seven chapters:Chapter 1,introduction.This chapter mainly explains the background and significance of this paper,examines the current research situation,and then summarizes the research ideas,technical routes,the main research contents of each chapter,as well as the innovation points and shortcomings.Chapter 2,theoretical review.This chapter first clarifies the relationship between the concepts of free trade,free trade area and Pilot Free Trade Zone,and summarizes the relevant theories of Pilot Free Trade Zone.It points out that classical trade theory is the origin and neoclassical trade theory,new trade theory and new trade theory are the cornerstone.These trade theories have certain positive significance for guiding and analyzing the construction of China’s current Pilot Free Trade Zone.Then,the connotation,type and manifestation of resource mismatch are investigated,especially the research on intension mismatch and extension mismatch made by western scholars.Finally,the paper focuses on the impact mechanism of the establishment of PFTZ on the resource allocation of manufacturing and high-tech industries in different regions,and the transmission path of economic growth through promoting industrial structure upgrading,promoting enterprise innovation and improving resource mismatch.Chapter 3,Analysis framework and statistical measure of resource mismatch.As the analytical framework proposed by the Hsieh and Klenow(2009)has now become a classical analytical framework for scholars to study the problem of resource mismatch,The relative distortion coefficient of resources has become a classical method for scholars to measure the degree of resource mismatch,The discussion of resource mismatch and efficiency loss in this chapter is also based on this framework.But,uh,Given that the analytical framework considers only the traditional allocation of labour and capital elements,People are also very concerned about the allocation of innovative resources such as R&D personnel and R&D capital under the realistic background of implementing innovation-driven strategy in our country,Therefore,Hsieh and Klenow(2009)analytical framework is expanded in this chapter,So as to be able to examine the traditional labor force,capital and other factors of production,as well as R&D personnel,R&D capital resource allocation.Meanwhile,To facilitate further analysis of the impact of factor mismatches on outputs,This chapter also deduces the output expression under the framework of resource mismatch analysis,And then the Syrquin output change decomposition method is extended,Further decompose the resource allocation effect examined by the Syrquin into the impact of resource mismatch(referred to as "net allocation effect")and the impact purely due to the change of output share(referred to as" output share effect ").Finally,on that basis,This paper empirically measures and analyzes the mismatch of resources between the whole manufacturing industry and the subdivision industries of high-tech manufacturing industry,The influence of resource mismatch on output change of manufacturing industry and high-tech manufacturing industry is analyzed.The results show that,first,All provinces and regions,manufacturing as a whole,Or high-tech manufacturing segments,Their labor,capital,R&D capital,R&D personnel have different degrees of resource mismatch.In terms of time,Most of the time,the allocation of labor and capital resources is in the state of excessive investment,And the degree of labor mismatch is higher than capital mismatch;The investment of R&D capital and R&D personnel is relatively insufficient,This shows that the growth of the whole manufacturing industry and the subdivision of the high-tech manufacturing industry in various provinces and regions of our country mainly comes from the input of traditional elements,and the level of R&D resource investment is relatively low.Second,At the regional level,There are obvious differences in the allocation of resources in the eastern and central and western regions of China,And the main performance is that the resources in the middle and west are relatively excessive,And the investment in the eastern region is relatively insufficient.Why,We believe that,on the one hand,The capital and labor market level in the eastern region is relatively high,Government intervention is relatively small,The market mechanism is perfect,This makes the allocation of various factors of production resources mainly regulated by the market mechanism,Therefore,the degree of mismatch is relatively light;In addition,Barriers to labour mobility between regions have not been completely eliminated,So that the manufacturing industry as a whole and the high-tech industries in the eastern region of the labor allocation compared with the central and western regions there are obvious deficiencies.Although the eastern region has gathered a lot of human and material capital through the siphon effect,But because of its relatively high productivity,As a result,all kinds of production resources are still in short supply.On the other hand,Regional policies implemented by the State to support the development of the central and western regions,Give them investment,credit,As a result,the current central and western regions of the relatively excess allocation of elements.Further using the expanded Syrquin decomposition method to decompose the total output of the manufacturing industry as a whole and the subdivision industries of the high-tech manufacturing industry into factor input increase effect,technological progress effect,output share effect and net allocation effect,It turns out,Whether manufacturing as a whole or high-tech manufacturing segments,The effect of factor input increase on industry output growth is still the biggest;The contribution of technological progress to output is positive,But the contribution is relatively small;In terms of output share effect and net allocation effect,Mainly by the output share effect in the promotion of output growth,The contribution of net allocation effect to output growth is negative.This shows that the extensive growth model of the whole manufacturing industry and the subdivision industry of high-tech manufacturing industry in China has not changed.Chapter 4,The improvement effect of the establishment of Pilot Free Trade Zone on the mismatch of manufacturing resources in various regions.Chapter 2,in the theoretical analysis of the influence mechanism,We believe that the PFTZ can integrate all kinds of resources through siphon effect and agglomeration effect,and rational allocation of resources to more productive sectors,And then alleviate the mismatch of resources.To test this conclusion empirically,This chapter is based on the measurement of the overall resource mismatch of manufacturing industry in provinces and districts,The establishment of Pilot Free Trade Zones in different provinces as quasi-natural experiments,By using the multi-period double difference model(DID),the effect of improving the mismatch of all kinds of factor resources in the relevant provinces and regions was investigated.It turns out,First,Compared with the control group,The establishment of PFTZ has a significant mitigation effect on the mismatch of labor force,capital,R&D personnel and R&D capital of manufacturing industry in the experimental group.Second,There are some regional differences in the mitigation effect of FTA on the mismatch of manufacturing resources,The mitigation of resource mismatch in the national PFTZ established in the less developed regions of China and the west is obviously higher than that in the developed regions of the east.Third,Using different measures of resource mismatch to test robustness,The results show that the benchmark regression is robust;At the same time,the counterfactual test assuming no national free trade zone,These results remain robust.Chapter 5,the establishment of Pilot Free Trade Zone to improve the allocation of high-tech manufacturing resources in provinces and regions.In the analysis of the previous chapter,we look at the manufacturing industry of each province as a whole.Although we can compare and judge the improvement of the overall resource mismatch of the manufacturing industry in each province and district by the establishment of the Pilot Free Trade Zone as a whole,The relevant conclusions are still very rough.So we want to ask:the establishment of the PFTZ has made an important contribution to the improvement of resource mismatch in which subdivision industries?What other subdivisions still have low resource allocation efficiency,serious resource mismatch,or the establishment of PFTZ has little effect on the improvement of resource mismatch?Considering that there are more subdivision industries in manufacturing industry,and after China’s macro economy has entered the "new normal ",the extensive economic growth model has been unsustainable.The importance of high-tech manufacturing industry,which is led by innovation,with high technology content,fast growth and strong correlation with other sectors of the national economy,is becoming more and more prominent.Therefore,in this chapter,we further take the subdivision of high-tech manufacturing industry as the research object,and examine how the establishment of the PFTZ has affected the mismatch of factors of production resources in five kinds of high-tech industries,such as pharmaceutical manufacturing,aerospace manufacturing,electronics and communications equipment manufacturing,computer and office equipment manufacturing,medical equipment and instrumentation manufacturing.Chapter 3 has measured and compared the resource mismatch degree of the above five kinds of high-tech manufacturing industries in various provinces and regions.This chapter also uses the multi-period double difference model(DID)to investigate the impact of the PFTZ on the resource mismatch of different high-tech manufacturing industries in various regions before and after its establishment.The results show that,first,the establishment of PFTZ has significantly alleviated the mismatch of labor,capital and R&D personnel and R&D capital in five kinds of high-tech industries:pharmaceutical manufacturing,aerospace manufacturing,electronics and communications equipment manufacturing,computer and office equipment manufacturing,medical equipment and instrumentation manufacturing;Second,the robustness of the benchmark results is tested from the two aspects of changing the resource mismatch measurement index and assuming that the national Pilot Free Trade Zone is not established.The results show that the analysis results of the benchmark model on the impact of the establishment of the Pilot Free Trade Zone on the resource mismatch of high-tech manufacturing industry are credible.Chapter 6,the effect of the establishment of Pilot Free Trade Zone on economic growth.Combined with the analysis of chapters 4 and 5,we can see that China vigorously promotes trade liberalization,continuously increases the establishment of Pilot Free Trade Zones,and improves the flow speed of various factors of production in sectors and regions by breaking trade barriers,thus effectively improving the allocation efficiency of production resources in manufacturing and high-tech manufacturing industries.In addition,each Pilot Free Trade Zone also tries to carry on the omni-directional,multi-domain reform and opening up exploration in the innovation drive,the industry upgrade and so on,and then promotes the regional economic development.So,can the establishment of PFTZ indirectly affect the economic growth of manufacturing industry through upgrading the corresponding industrial structure,accelerating innovation drive and improving resource misalignment?According to the analysis of the theoretical transmission mechanism in Chapter 2,the establishment of PFTZ can promote economic growth positively,and it can also affect economic growth by promoting industrial structure upgrading,promoting enterprise innovation and improving resource mismatch.Therefore,in order to further systematically,comprehensively and objectively test the direct and indirect effects of the establishment of the PFTZ on economic growth from the empirical point of view,this chapter first uses the double difference model to study the impact of the establishment of the PFTZ on economic growth.And whether the impact will produce certain regional differences.Then,using the intermediary effect model to test whether the establishment of PFTZ will indirectly affect economic growth through industrial structure upgrading,innovation drive and resource mismatch.The results show that the establishment of PFTZ can significantly promote the economic growth of manufacturing industry.The results of intermediary effect model show that the establishment of PFTZ can promote the economic growth of manufacturing industry through upgrading industrial structure,promoting enterprise innovation and improving resource mismatch.Overall,the effect of PFTZ on economic growth is positive.In addition,we also find that there are great differences in the effects of the establishment of the PFTZ on economic growth between regions,and that the establishment of the PFTZ in the underdeveloped central and western regions has a significant role in promoting economic growth.Finally,after one year,two years and three years in advance of the establishment of the national Pilot Free Trade Zone,the counterfactual test assuming that there is no national free trade area is carried out.The results show that the double difference variable does not have any effect on economic growth in the absence of the national Pilot Free Trade Zone.Therefore,there is no systematic error in the above conclusions.Chapter 7,conclusions and policy recommendations.The main conclusions of each chapter are summarized and refined,and the corresponding policy space is clarified.The above is the main framework of this paper,the recommendations given in this paper include:(1)With regard to the mismatch of labour resources,there is a need to accelerate labour market reforms and reduce barriers to labour mobility.On the one hand,the restrictions on household registration,the improvement of the social security system,the strengthening of vocational training and the establishment of a regional public service platform for the labor force are removed in order to reduce the barriers to the movement of labor between sectors and regions.At the same time,with the help of PFTZ to break the traditional trade barriers,use knowledge spillover effect to strengthen the learning and exchange between labor force,and then improve the efficiency of labor resource allocation;(2)in terms of capital mismatch,state-owned enterprises often have cheap access to capital,but this to a considerable extent damages the development of private small and medium-sized economies,makes it difficult to enjoy the financing facilities of state-owned enterprises,and thus exacerbates the relative distortion of capital prices.Therefore,we should further promote the reform of the capital market,and with the help of investment facilitation in the Pilot Free Trade Zone,encourage enterprises to use two kinds of resources at home and abroad,two kinds of markets,promote the two-way opening of the market,realize the global allocation of capital,and then improve the allocation efficiency.To give full play to the innovative effects of the PFTZ in terms of R&D resource mismatch and to provide strong policy guarantees for markets,products,services and investments through an excellent institutional environment,thereby weakening the adverse systems and policy factors that restrict the efficient allocation of R&D resources,in order to attract large R&D capital,R&D personnel and other innovative resources into the larger,more profitable and more R&D enterprise sectors,thereby enhancing the efficiency of R&D resource utilization and improving resource mismatch.(4)As far as high-tech industries are concerned,high-tech industries are a new driving force for the future development of the world economy.In these new high-tech areas,we should not only strengthen basic research and focus on cultivating independent innovation capabilities,but also focus on introducing foreign investment with advanced technology,especially attracting foreign enterprises to set up R&D institutions in China,further exerting the spillover effect of advanced technology in the PFTZ,and tap the maximum efficiency of technological progress for its development so as to achieve the sustainable development of high-tech industries and compete with developed countries in the world market.(5)Continue to implement the innovation-driven development strategy and continuously improve the living and working environment for attracting and gathering high-end innovative talents in the national Pilot Free Trade Zone,so as to enhance the attraction of the national Pilot Free Trade Zone to high-end human capital,promote the accumulation of human capital in the national Pilot Free Trade Zone,realize the optimization and upgrading of industrial structure,give full play to the economic effect of industrial structure optimization,and promote the development and transformation of local economy.The innovation of this paper is mainly reflected in the following aspects:(1)In the literature on resource allocation,Few analyses of the mismatch of R&D resources and its impact on economic output,This paper analyzes the degree of relative mismatch of all kinds of resources in China under the framework of expanded resource mismatch theory,and incorporated into the Syrquin decomposition framework,In order to provide a new way to explain the contradiction between the increase of production resources investment and the gradual decline of economic growth.(2)The existing literature rarely summarizes the impact of the establishment of PFTZ on resource allocation from a theoretical point of view.This paper mainly analyzes the connotation and manifestation of resource mismatch,the related theories of the development of PFTZ,the resource mismatch of different manufacturing and high-tech industries and the influence mechanism on economic growth,Combined with the existing literature,the development of the Pilot Free Trade Zone and the study of alleviating the mismatch effect of resources are explained.(3)Research on the measure of resource mismatch rarely involves the measurement of various segments of high-tech manufacturing industry in each province and district.This paper fully examines the resource allocation efficiency of five types of high-tech industries in the manufacturing and pharmaceutical manufacturing industries in various regions,aerospace and spacecraft manufacturing,electronics and communications equipment manufacturing,computer and office equipment manufacturing,medical equipment and instrumentation manufacturing:considering the spatial correlation generated by the resource allocation structure and the inter-regional resource circulation among the main bodies within the region,More comprehensive and systematic disclosure of regional resource allocation.(4)From the perspective of the PFTZ,Focusing on the impact mechanism of the establishment of PFTZ on the resource allocation of manufacturing and high-tech industries in different regions,And the establishment of Pilot Free Trade Zone affects the transmission path of economic growth by promoting industrial structure upgrading,promoting enterprise innovation and improving resource mismatch.Further enriching the research on the establishment of PFTZ,resource mismatch and economic growth from the perspective and content,Deepen and supplement the existing literature.