Analysis Of The Effect Of Informatization On The Enterprise's Markups

Since the 21 st century,information technology has gradually penetrated into everywhere.Production automation,mobile payment and artificial intelligence have changed people's daily life and production mode.Manufacturing industry is the main body of national economy.In order to seize the historical opportunity,the State Council proposed the strategy "Made in China 2025" which emphasizes the significance of informatization to manufacturing enterprises.In the Information Age,it is of great theoretical and practical significance to explore the influence and mechanism of informatization on micro individuals.Therefore,this paper will analyze the impact of informatization on the enterprise's markups from macro and micro perspectives.The research of this paper is carried out in the following two aspects.Firstly,based on the research of Melitz & Ottaviano(2008)and Sheng & Zhang(2017),this paper analyzes the impact of informatization on the enterprise's markups and raising two hypotheses.Second,this paper tests the theoretical hypothesis through empirical analysis.For the first step,this paper estimates the production function of Chinese manufacturing industry and calculates the markups and total factor productivity of microenterprise based on the research of DeLoecker & Warzynsik(2012)and Levinsohn & Petrin(2003).For the second step,this paper analyzes the distribution characteristics of the enterprise's markups in regions with different levels of informatization development and constructes the measurement model to test hypothesis 1.For the third step,this paper constructes the measurement model to test hypothesis 2 and uses different estimation methods and data sources to test the robustness.Based on the above theoretical and empirical analysis,this paper comes to the following four conclusions.First,both productivity and markups of previous period have a significant positive impact on the enterprise's markups of current period.And labor cost has opposite impact on its markups.Second,the level of regional informatization development has a significant positive impact on the enterprise's markups.Third,the information construction and application of enterprises can improve its markups by improving productivity and promoting innovation.Fourth,the export trade has a significant negative impact on the enterprise's markups.Based on the above analysis,this paper puts forward three suggestions.First,regions should actively respond to the call of national informatization construction and realize the transformation and upgrading of traditional manufacturing industry.Meanwhile,the regional governments should encourage enterprises to introduce information technology and carry out R&D activities.Second,the improvement of productivity is fundamental to improve the enterprise performance.The enterprise should introduce advanced information technology to serve the production and operation.In the same time,the managers should pay attention to the internal organization and management which means strengthen process management and avoid unnecessary loss of efficiency.Third,the enterprises can reduce production costs and increase its markups by increasing the use of information capital and reducing labor inputs.Laborers should actively upgrade their labor skills to cope with the impact of the information age on employment.