City Scale、Resource Allocation Efficiency And Productivity Advantage

With the expansion of urban scale,the further development trend of cities of different scales has become an important issue of urban development.According to the view of urban economics,the agglomeration of capital,labor and technology brings the agglomeration effect of economic development.The level of urbanization is rising,but the attendant problems are that the large cities,especially megacities and megalopolis,are accompanied by enormous costs,including severe environmental problems,traffic problems and other high costs.The reality is that despite the huge uncertainty and high costs,90%of large enterprises are still located in large cities,large cities which gain the scale effect have also brought regional development imbalances,so,how can the development of small cities correspond to large cities?How can the advantages of large cities and small cities be used each other?Where are their development directions?At the same time,for the regional economic growth and total factor productivity growth,we realize that the previous research focuses on the role of technological innovation.With the deepening of research,the research on resource allocation efficiency has become an important research area of total factor productivity growth.And Considering the aggregation effect of large cities,these problems prompt us to start to pay attention to the efficiency of resource allocation to analyze the source of the large cities’s productivity advantage.The existing research focuses on the productivity advantage of large cities.The conclusion indicates that the productivity advantage of large cities may come from higher agglomeration effect or selective effect,but this kind of analysis still can not explain the above problems absolutely.What is the source of the agglomeration effect,are there other exogenous factors will affect this relationship,in addition,based on the development of large cities,what is an important foundation for the development of small cities?Yang(2015)pointed out that with respect to focusing on their own growth,the efficiency of resource allocation among enterprises is also essential to enhance the efficiency,the improvement of inter-enterprise resource allocation efficiency accounts for the continuous increase of productivity,Hsieh and Klenow(2009),based on the data of Chinese and Indian industrial enterprises.further analyzes the important role of resource allocation efficiency in China’s productivity improvement from the perspective of resource misallocation,which gives us an oriention for this paper.Based on the decomposition of productivity,this paper attempts to identify the key factors influencing the productivity growth of cities of different scale.The main productivity decomposition methods include OP,BHC,GR,FHK and DOP methods.The BHC,GR and FHK methods are only used as the robustness test because of their own problems.The decomposition methods of OP and DOP are mainly used in this paper.The former is horizontal decomposition of productivity that is the static comparison of productivity differences;the latter is used to decompose productivity changes to analyze differences in the source of productivity.These two methods based on the heterogeneity of enterprises to decompose the productivity achieve a more Clear and accurate decomposition of the productivity,which avoids relying solely on statistical transformation to describe the efficiency of resource allocation for the previous decomposition models that will cause the lack of theoretical basis and larger result differences and other issues.Based on the annual survey of industrial firm in China and regarding urban space as border for productivity analysis,this paper achieves inter-enterprise indirect measure of the resource allocation efficiency by applying the OP and DOP decomposition methods to exploring the source of the dynamic Chinese cities productivity advantages,and then finds the fact of the large cities with a higher resources allocation efficiency,which provides a new interpretation of the phenomenon of convergence of firms to the large cities,and at last empirical test is carried out.We draw the following conclusions.①The large cities keep static and dynamic productivity advantages,meaning that their productivity is not only high but also enhances fast,which may constitute the major economic reasons for the large cities to attract and converge enterprises.②For source of the dynamic productivity advantages,productivity enhancing of different cities comes mainly from their firm growth effect(with in-effect),but the difference in productivity enhancing between cities depends on different resource allocation efficiency among firms(between-firm effect),which it can account of 39.51 percent for the large cities but only 22.91 percent for the small and medium cities.Large cities because of higher resource allocation efficiency achieved faster productivity enhancing.③For the exclusion of other factors,on the one hand resource allocation efficiency among firms mainly depends on the non-state-owned firms,and state-owned firms does not play an important role in it;on the other hand,the administrative level and industry classification are not the main reason for firms to converge larger cities.④City scale and resource allocation efficiency among firms exist a significant positive relationship,and the gap betwee large cities and small and medium city is gradually enlarging,there is a foresee that the allure of the large cities will be further enhanced.Therefore,a higher level of resource allocation efficiency may explain why Chinese large cities are more attractive and it will be revealing for dealing with "big city disease" and the imbalance in regional development.For our conclution we can give these policy advices:First of all.the mechanism of attraction of big cities originates from the efficiency of resource allocation."De-administration" may not solve "big city disease".In the development of small cities with lower administrative levels,it is necessary to focus on enhancing the level of marketization in this region and perfecting the market mechanism.Secondly,the study of different ownership enterprises suggests that small cities should pay attention to the development of non-state-owned enterprises,fully release the vitality of private enterprises,promote the efficiency of resource allocation,and promote the overall productivity incease of the region.Thirdly,for different industries of property,the efficiency of resource allocation in large cities has not been affected,indicating that the advantages of resource allocation efficiency is widespread,for small cities,the implication is to pay attention to the balance of all industries on the basis of considering the important industries.Finally,for the regional development imbalance,the difference of resource allocation efficiency between big cities and small cities explains the imbalance between the two.Therefore,small cities must overcome their own resource allocation disadvantages and promote regional resource allocation efficiency by improving factor mobility,optimizing allocation of resources and adjusting the economic structure,only by this way can the economy be improved in quality and quantity.