An Empirical Study On Industrial Externality And Total Factor Productivity Of Regional Manufacturing In China

Under the China's New Normal,the developing mode,industrial structure,and the engine of economic growth to China's economic needs to change.For the present in China,the advantages of the demographic dividend gradually disappearing,the labor shortage and the rising labor force gradually approaching,the developing mode is in urgent transformation,to transform from the essential factor actuation to increasing the TFP.With the gradual improvement of China's market economy environment and internationalized with the world economy,industrial agglomeration in China has become particularly common at the same time.Industrial agglomeration has always been a hot topic in academic discussion,and agglomeration externality has always played a more important role in it.Externality can be divided into three types: MAR externality,Jacobs externality,and Porter externality.MAR externality supports the point that knowledge and technology spillovers among the same industry to promote technological progress and innovation,and emphasizing the role of regional monopoly on technological progress,innovation and economic growth;the key thought of Jacobs external is due to the diversity and differentiation of geographical clustering enterprises and regional competition,can we promote the flow of technical and knowledge among firms.Porter externality agrees that the high level of competition within the same industry can promote technological advancement,and maintain the competitiveness of enterprises,while regional monopoly do harm to technology flows,technological progress and growth.Three types of externality have always been the focus of empirical research at home and abroad,and empirical research on the externalities mainly focus on the following two aspects: First,the study of three externalities and regional or industrial economic growth,and the second is to explore the impact of externalities on innovation.Total factor productivity(TFP)is an important index to measure the quality of economic growth and reflects the progress of technology.The influence of the three externalities on it is worth studying.In this paper,we constructed a model between MAR externality,Jacobs externality,Porter externality and TFP to manufacturing of 30 provinces by using the data which is provided by the China Industrial Statistical Yearbook during 2004 and 2015.We deviled the whole manufacturing into labor-intensive,resource-intensive and technology-intensive industries to do the empirical study.The empirical outcome showed that Jacobs externality and Porter externality has a significant positive effect on TFP of the whole manufacturing and the three subdivided industries.As to the TFP decomposition,Jacobs externality can improve the technological efficiency of the manufacturing industry and have an inhibitory effect on technological progress,Porter externality can promote the technological progress of manufacturing industry,also improve the industry specialization and maintain regional monopoly of industry can promote technological progress of labor-intensive industries,which hold the same view to MAR externality.The technological efficiency of labor-intensive industries is mainly affected by regional competition.While only Porter's externalities the have a positive effect on technological progress and technical efficiency of resource-intensive industries.keep industry Specialization is good for the technological progress of technology-intensive industries,and industry diversification and market competition is more conducive to the improvement of technical efficiency.