Research On The Influence Of Manufacturing Agglomeration On Total Factor Productivity In China

Since the reform and opening up,China's economy has been developing rapidly,and the industrial structure has been transformed.In 2013,the value added of the service industry exceeded the proportion of the manufacturing industry in GDP for the first time.Meanwhile,the development of the manufacturing industry in China is faced with the problems of low input contribution rate,unreasonable industrial structure and high dependence on foreign countries for core technologies.Under the situation of technology-economy paradigm shift,the contribution of traditional labor and capital factors to total factor productivity is decreasing,and the progress and innovation of enterprise technology are taking its place.Technological efficiency and cutting-edge technological progress are considered as the main components of total factor productivity of enterprises.Many scholars believe that industrial agglomeration drives productivity improvement by promoting technological progress and is an important variable affecting total factor productivity.However,on the one hand,industrial agglomeration brings external economic,competitive and innovative benefits to enterprises.On the other hand,the expansion of city scale leads to the phenomenon of resource scarcity and serious environmental damage,and the "crowding effect" of agglomeration leads to the decrease of resource use efficiency.There are two opinions in academic circles about whether industrial agglomeration can promote productivity growth.Most scholars believe that there is a non-linear relationship between industrial agglomeration and total factor productivity,and the influence of industrial agglomeration on total factor productivity presents gradient characteristics in different thresholds.It can be seen that it is of great significance to study the influence of manufacturing industry agglomeration on total factorproductivity for the high-quality development of China's manufacturing industry.In this paper,theoretical and empirical studies are carried out.By analyzing the change trend of manufacturing agglomeration level and total factor productivity,as well as the influence mechanism of manufacturing agglomeration on total factor productivity,the nonlinear relationship between them is preliminarily determined.Furthermore,the threshold model is used to empirically study the effect of industrial agglomeration on total factor productivity and put forward policy Suggestions for the development of manufacturing agglomeration.First of all,on the basis of the system combing the domestic and foreign scholars study,choose 2000-2017 China's 30 provinces and municipalities and autonomous regions except Tibet 18 two digits manufacturing industry's panel data,location entropy measure manufacturing agglomeration level,the use of DEA Malmquist index method,measuring the total factor productivity,to our country manufacturing industry agglomeration level and total factor productivity change trend are analyzed.The study found that the manufacturing industry concentration level in China presented an n-shaped development trend.The manufacturing industry concentration level was the highest in the eastern region,followed by the northeast region,followed by the central region and the west region.Total factor productivity(TFP)fluctuates.The TFP level in the eastern,northeastern and central regions is relatively high,while that in the western regions is somewhat different.Secondly,this paper discusses the influence mechanism of industrial agglomeration on total factor productivity.On the one hand,industrial agglomeration will promote the improvement of total factor productivity of enterprises through knowledge spillover,labor pool,basic implementation sharing and intermediate input sharing mechanism.On the other hand,the phenomenon of excessive agglomeration will exceed the capacity limit of the market and the carrying capacity of the environment,lead to the shortage of factors,the rise of transportation and living cost,and hinder the development of enterprises.Under the positive and negative effects,the threshold effect of industrial agglomeration on total factor productivity exists.Again,to total factor productivity,technical progress and technical efficiency tobe explained variable,the threshold for the manufacturing industry agglomeration level variables,r&d investment,foreign direct investment,human capital as control variables,such as using Hansen panel threshold model empirical studies of China's manufacturing industry agglomeration under different concentration level to the total factor productivity effect.The empirical analysis shows that the industrial agglomeration of China's manufacturing industry mainly promotes the growth of total factor productivity through technological progress rather than technological efficiency,and this utility has a threshold effect.When the agglomeration degree exceeds the threshold value of 1.168,the promoting utility of industrial agglomeration on total factor productivity decreases significantly.In addition,r&d investment,foreign direct investment,human capital,export trade,infrastructure and industry scale all promote TFP to different degrees,while urbanization process and government behavior inhibit TFP.Finally,based on the development characteristics of China's manufacturing industry,this paper puts forward some policy Suggestions,such as reasonably raising the manufacturing industry agglomeration level,actively planning and guiding the manufacturing industry agglomeration direction,promoting the cooperation and innovation of enterprises in the agglomeration area,and establishing a reasonable competition mechanism.