The Impact Of Government Subsidies On Total Factor Productivity Of Emerging Industries

Now it has become a general trend that emerging industries are gradually replacing traditional industry.China has also begun to develop emerging industries vigorously.On November 29,2016,the State Council issued and implemented the "13th Five-Year" National Emerging Industry Development Plan.The plan made comprehensive arrangements for China's emerging industries development goals,key tasks,and policy measures during the "13th FiveYear Plan" period.On February 4,2017,the National Development and Reform Commission announced the 2016 edition of the "Guidance Catalog for Key Products and Services in Emerging Industries".Government at all levels has formulated subsidy policies for emerging industries to promote the growth of emerging industries more healthily and rapidly.Scholars at home and abroad have also studied the effects of various forms of government subsidies on the total factor productivity of enterprises,but there is no unified conclusion.Moreover,most of the researches about the effect of government subsidies focus on the performance of traditional enterprises instead of emerging industries and ignore the mechanism between them.Actually it is the mechanism of how government subsidies act on the total factor productivity of emerging industries that is crucial to the development of emerging industries and the country's subsidy policy direction in the future.Based on previous studies,this paper introduces the existing circumstances of emerging industries,the types and status of government subsidies in emerging industries,and the theoretical basis for government subsidies in emerging industries.According to relevant researches,combined with the current situation,the mechanism of positive and negative government subsidies affecting the total factor productivity of emerging industries is analyzed.This paper selects the new energy industry as the representative of the emerging industry,selects 80 listed companies,and uses 2009-2018 data to measure the total factor productivity by using the BSFA method.Then,through the intermediary effect model,R&D investment and enterprise size are selected as intermediary variables,and hypotheses are made on the path of government subsidies on the total factor productivity of emerging industries,and an empirical regression is carried out.This paper also examines the heterogeneity from the perspectives of different enterprise ownerships and traditional emerging industries,and investigates whether the research results of this paper are also applicable to the above-mentioned different situations.This paper finds that government subsidies can increase the total factor productivity of emerging industries significantly;it can increase the R&D investment and enterprise size of emerging industries significantly;in the process of government subsidies acting on the total factor productivity of emerging industries,both R&D investment and enterprise size are significant parts of the intermediary role,corporate ownership does not affect the main research conclusions;while government subsidies act on the total factor productivity of traditional industries,although the total factor productivity of traditional industries can be significantly improved,the impact path is different from emerging industries,and R&D investment does not play an intermediary role,the scale of the enterprise plays a full intermediary role.Based on the existing empirical results and analysis,this article puts forward some suggestions from the perspective of the government and enterprises: the government should increase the subsidy input appropriately and allocate the subsidy rationally and set the goal discreetly,supervise the utility of government subsidies.Enterprises should promote the utilization efficiency of government subsidies and use special funds earnestly,increase enterprise R&D investment and improve R&D efficiency and improve the standardization of R&D activity information disclosure.