The Impact Of Factor Price Distortion On The Change Of Resource Allocation Efficiency

Since the reform and opening up in the past 40 years,China has high-speed growth depending on high investment in the early stage.However,in the later period,we want to change the extensive economic growing way and achieve the transition from "high-speed development"to"high-quality development",with the focus on improving total factor productivity.Its influencing factors have also been the focus of our attention.By decomposing the total factor productivity of 31 provinces in the country from 1997 to 2016,the paper finds that the growth of resource allocation efficiency is gradually increasing in the growth of total factor productivity,becoming one of the main drivers of economic growth.We derives the influence of factor price distortion on the efficiency of resource allocation in the economy,constructs the distortion index of factor price caused by government intervention,and then,the change rate of resource allocation efficiency is empirically analyzed by the explanatory variables,and in the robustness test,the distortion index is reconstructed by the deviation of factor price from marginal output.The conclusions are as follows:(1)Taking TFPG as the explanatory variable will dilute the importance of price distortion.The mechanism of driving TFP growth through resource allocation efficiency growth requires the synergy between market and government,while the market is still the dominant force;(2)When the government intervention is "taxation",the efficiency growth rate will decrease,while the"subsidy" will cause an increase.In the robustness test,the relationship bwtween relative distortion index and the efficiency growth rate show an inverted U-shaped;(3)In the eastern regions with high degree of marketization,the increase of allocation efficiency mainly depends on the market power which can eliminating the distortion,while in the central and western regions,there is still place for deepening the distortion to accelerate the growth of resource allocation efficiency;(4)The optimization of ownership structure and industrial structure has a certain dilution effect on distortion in the east,and it will aggravate the negative effect of distortion in the central and western regions;Human capital has the effect of improving distortion in the central and eastern regions;R&D investment can play a better role in the eastern region;Foreign trade has a role in promoting the three major regions,with the most obvious in the central region.On the basis of empirical conclusions,author analyzes the mechanism of distortion-promoting efficiency allocation growth,and proposes that marketization is the fastest choice to improve resource allocation.Deepening distortion is only a means for government to effecting price in the case of incomplete market de’velopment,but it is an unstable equilibrium.Finally,on the basis of these conclusions,it is proposed that the central and western regions should increase the intensity of market-oriented reforms and reduce their dependence on government subsidies.The eastern region will continue to give play to the advantages of marketization while emphasizing the auxiliary role of government policies.