The Research On The Impact Of Trade Cost Of Producer Service Industry On Total Factor Productivity

On the 40 th anniversary of the reform and opening up,China's economy has remained the second largest in the world,and its industrial structure has been constantly optimized.However,since 2018,the economic and trade frictions between China and the United States and the deterioration of the international trade environment have significantly increased the cost of international trade in services.Based on producer services,this paper explores the impact of trade costs on total factor productivity,and puts forward relevant policy Suggestions to avoid the negative impact of rising trade costs.In this paper,normative analysis and empirical analysis are combined,and qualitative analysis and quantitative analysis are combined to conduct an empirical test on panel data of 7 producer services in 18 countries from 2002 to 2014.This paper conducts research at the level of producer service industry,and clarifies the path of trade cost affecting total factor productivity from both direct and indirect mechanisms.First,the direct mechanism means that the reduction in trade costs directly promotes the improvement of total factor productivity through the effects of resource redeployment and industrial technological advancement.Secondly,the indirect mechanism means that the reduction of trade costs enhances the comparative advantage and binary margin of a country,and promotes the growth of total trade volume.The growth of total trade indirectly boosts total factor productivity through self selection effects,learning effects,and technology spillovers.Finally,based on the analysis of theoretical mechanisms and the reality of the development of China's producer service industry,two hypotheses are proposed: First,the trade cost of the producer service industry has a negative effect on total factor productivity.Second,when the trade cost of China's producer service industry decreases,the increase of total factor productivity is relatively small.In terms of measurement evidence,the improved gravitational model of Novy(2013)was used to measure the trade cost of the producer service industry,And construct an econometric model of trade costs affecting total factor productivity.Using panel data for seven production services in 18 countries including China in 2002-2014,the sample observations that can be used for quantitative regression analysis reached 13,000.The regression results show that the trade cost of producer service industry inhibits the increase of total factor productivity,which verifies the hypothesis one in this paper.Based on the international data measurement analysis,the total factor productivity increased by about 0.07 percentage points when the trade cost of the producer service industry decreased by 1%.Based on China's data measurement analysis,it is found that when the trade cost of the producer service industry is reduced by 1%,the total factor productivity is increased by about 0.05%,which verifies the hypothesis 2 of this paper.In order to promote the improvement of the total factor productivity of China's productive service industry,the following policy recommendations are proposed: First,focus on reducing the sunk cost of entering or exiting the service industry;second,reducing the financing cost of service enterprises;First,focus on reducing the sunk cost of entering or exiting the service industry;second,reducing the financing cost of service enterprises;The fourth is to attach importance to the cultivation and use of highly skilled personnel.Since highly skilled labor has a significant positive impact on the productivity of the service industry,it is necessary to strengthen the accumulation of human capital and fully mobilize the enthusiasm of highly skilled personnel.