Research On The Impact Of Local Government Competition On Industrial High Quality Development

The Fifth Plenary Session of the 19 th CPC Central Committee clearly proposed to accelerate the construction of a new development pattern with the domestic cycle as the main body and the domestic and international double cycles promoting each other.The key to building a new development pattern lies in the smooth economic cycle,and industrial development,as an important engine of economic growth,its industrial development quality and efficiency determine the sustainable driving force of economic growth,which reflects the importance of realizing industrial high-quality development to promote the smooth economic cycle.Therefore,how to achieve industrial high-quality development has become the hottest topic at present.The local government is an important part of China’s "central government,local government and market",and give full play to the initiative and enthusiasm of local government has important strategic significance in the process of industrial development.The policies and measures adopted by local governments in line with the degree of development are not only an important link to promote the industrial high-quality development,but also a catalyst to improve industrial vitality,promote the upgrading of industrial structure and the rise of value chain.From the different stages of industrial development,the competition of local governments for mobile resources in the process of economic development is one of the important factors affecting industrial development.Local government competition will urge local governments to "operate" land,preferential policies,fiscal expenditure and regulatory orders through "helping hand" or "grabbing hand",so as to realize the competition for high-output and high value-added projects and liquid resources.And form strategic interaction among governments such as market protection,bottom-by-bottom competition,competition and differentiation,so as to drive local economic growth,and realize the Chinese economic development model of "competition for growth".However,with the economic development entering the high-quality development stage,"competition for growth" is no longer suitable for the development concept of the new era,"competition for innovation","competition for talents","competition for environmental protection" and "competition for harmony" have become the main objectives of local government competition.Under this competitive goal,local governments will increase people’s livelihood investment and expenditure,change regional development priorities and industrial policy tendencies,and optimize business environment and service efficiency,so as to promote Pareto improvement of industrial development.In view of this,this paper focuses on the topic of "the impact of local government competition on industrial high-quality development",through the analysis of theoretical basis and action mechanism to explains the direct and indirect action mechanism of the impact of local government competition on industrial high-quality development deeply and systematically,through measurement and empirical observation to clarify the development status of local government competition and industrial high-quality development and the fitting relationship between them,through empirical test to explore the direct and indirect impact of local government competition on industrial high-quality development.The specific arrangement of this article is as follows:The first chapter is the introduction.Including the issue,the theory and practical significance of research,research methods,article structure,research ideas,as well as the innovation and deficiency of this paper.The second chapter is the literature review.Firstly,it combs the relevant literature of local government competition,mainly including the connotation and types of local government competition.Secondly,it combs the relevant literature of industrial high-quality development,mainly including the connotation and measurement of industrial high-quality development.Thirdly,it combs the relevant literature on the impact of local government competition on industrial high-quality development,mainly including direct impact and indirect impact.Finally,the literature review is carried out to find the deficiencies in the existing research and improve it.The third chapter is the theoretical basis and mechanism analysis.Firstly,it defines the relevant concepts,reviews and combs the local government competition theory and industrial high-quality development theory,so as to provide effective theoretical support for follow-up research.Secondly,starting with the connotation of high-quality industrial development,this paper analyzes the direct mechanism of the impact of local government competition on high-quality industrial development from six aspects: value creation,efficiency improvement,structural optimization,kinetic energy cultivation,green transformation and welfare improvement.Finally,it analyzes the indirect mechanism of local government competition affecting the high-quality development of industry,not only considering the optimal allocation of resources through technological innovation,investment attraction and industrial agglomeration,but also analyzing the factor distortion caused by market protection and overcapacity caused by local government competition,so as to comprehensively and deeply explore the transmission path of the impact of local government competition on industrial high-quality development.The fourth chapter is the measurement and empirical observation of local government competition and industrial high-quality development.Firstly,measure the local government competition.The local government competition is measured from three aspects: tax competition,expenditure competition and promotion competition,and the comprehensive index of local government competition is obtained by weighting each competition variable;Secondly,measure the high-quality development of the industry.Based on the theoretical logic of industrial high-quality development,28 indicators are selected from six dimensions: value creation,efficiency improvement,structural optimization,kinetic energy cultivation,green transformation and welfare improvement,and measured by European distance method.Finally,empirical observation is made on the measurement results of local government competition and industrial high-quality development,including the empirical observation of local government competition,industrial high-quality development and the fitting empirical view of local government competition and industrial high-quality development.The fifth chapter is the analysis of the direct impact of local government competition on industrial high-quality development.Firstly,build a dynamic panel model to test the impact of local government competition on industrial high-quality development.Secondly,the panel data of 30 provinces(cities and autonomous regions)from 2005 to 2019 are used to empirically test the direct impact of local government competition on industrial high-quality development by using systematic GMM estimation,and the robustness test is carried out.Finally,it tests the heterogeneity of the impact of local government competition on industrial high-quality development,including structural heterogeneity,regional heterogeneity and temporal heterogeneity.The sixth chapter is the analysis of the indirect impact of local government competition on industrial high-quality development.Firstly,a recursive effect model is constructed to test the indirect impact of local government competition on industrial high-quality development.Secondly,from the perspective of optimal allocation of resources and factor distortion,this paper selects technological innovation,investment attraction,industrial agglomeration,market protection and overcapacity as intermediary variables to explore the transmission ways of local government competition affecting industrial high-quality development.Finally,the robustness test is carried out by replacing the high-quality development variables of the industry.The seventh chapter is the conclusion and policy recommendations.Firstly,it summarizes the conclusions of the full text,and comes to the conclusion that local government competition will promote the industrial high-quality development,but there are structural heterogeneity,regional heterogeneity and timing heterogeneity,and local government competition will affect the industrial high-quality development through technological innovation,investment attraction,industrial agglomeration,market protection and overcapacity transmission.Secondly,put forward relevant policy suggestions according to the conclusions.Finally,the research prospect is put forward.The innovations of this article mainly reflect the following aspects:First,in terms of action mechanism,this paper distinguishes the limitations of existing studies that only focus on one aspect of local government competition affecting industrial high-quality development,including industrial structure and industrial total factor productivity.This paper starts with the constituent dimensions of industrial high-quality development and the possible ways in which local government competition affects industrial high-quality development,systematically and comprehensively analyze the action mechanism of the impact of local government competition on industrial high-quality development,so as to make the action mechanism analysis more practical.Second,in terms of index measurement,for the measurement of industrial high-quality development indicators,relevant literature mainly uses industrial structure upgrading indicators to replace,and mostly focuses on the high-quality development of various departments within the industry,such as high-quality development of manufacturing industry,high-quality development of cultural industry,high-quality development of tourism and high-quality development of financial industry,the literature on the measurement of industrial high-quality development is relatively scarce,and the coverage of the construction dimension is limited.Therefore,when measuring the industrial high-quality development,based on the selection of traditional indicators and combined with the connotation of industrial high-quality development,this paper scientifically and effectively constructs the index system of the industrial high-quality development from six aspects: value creation,efficiency improvement,structural optimization,kinetic energy cultivation,green transformation and welfare improvement,so as to make the index system of industrial high-quality development more in line with the development needs of the current national conditions,and uses the European distance method to calculate it.Third,in terms of empirical test,this paper focuses on "the direct and indirect impact of local government competition on industrial high-quality development",including building a dynamic panel model to test the direct impact of local government competition on industrial high-quality development,and building a recursive effect model to test the indirect impact of local government competition on industrial high-quality development.In addition,this paper deeply excavates the heterogeneity of the impact of local government competition on industrial high-quality development,including structural heterogeneity,regional heterogeneity and temporal heterogeneity,and realizes the effective stretching of horizontal and vertical analysis.