The Impact Of Misallocation On Total Factor Productivity

In the special period of my country's economic development mode transformation it is necessary to promote quality innovation,efficiency innovation,and power innovation in economic development,and further promote the growth of total factor productivity.Improving the efficiency of capital allocation is essential to comprehensively improve total factor productivity.A large number of studies have shown that China has shown a relatively serious capital misallocation,which will affect China's total factor productivity and then hinder economic growth.Therefore,when deeply discussing the impact of capital misallocation on total factor productivity,it is necessary to make capital allocation fully play a key role.Based on the imbalanced institutional background of China's financial sector and manufacturing enterprises in the process of marketization reform,this article bases on the objective facts that China 's capital misallocation is widespread and the level of misallocation is uneven,it mainly analyzes the industry differences in capital misallocation and the industry differences in their impact on total factor productivity.This paper uses the data from Chinese industrial enterprises in 1998,2007 and 2013,and adopts the model of Hsien and Klenow(2009)to estimate the capital misallocation and total factor productivity of nine representative industrial industries,and based on this,empirical study and analyze the industry differences between the capital misallocation and total factor productivity in labor-intensive industries,capital-intensive industries,and knowledge-intensive industries,divide the three major industries,and further explore the differences in nine representative industries.The study found:Capital misallocation is common in China's industrial industry,and the level of capital misallocation in different industries is different.Among the nine representative industries,there are serious capital misallocation in chemical manufacturing industry and computer manufacturing industry.The research results show that the impact of capital misallocation on total factor productivity in the three major industries is quite different.Among them,the capital misallocation coefficient oflabor-intensive industries is-0.0953,indicating that the capital misallocation of companies in this industry is negatively correlated with the difference in total factor productivity,and the existence of capital misallocation has caused the difference in productivity between enterprises to narrow to a certain extent.Therefore,it will be beneficial to improve the total factor productivity of the industry;the capital misallocation coefficient of capital-intensive industries and knowledge-intensive industries are 0.2059 and 0.5286,indicating that capital misallocation does indeed cause the continuous expansion of productivity differences between enterprises,which in turn causes the industry's total factor productivity to deviate from the optimal level,further hindering the improvement of total factor productivity of the entire industry.In addition,among the nine representative industries,the impact of capital misallocation in chemical manufacturing industry on the difference in total factor productivity is the most prominent.Some conclusions were drawn based on the previous research,and some suggestions for improvement were put forward based on the conclusions,in order to eliminate capital misallocation,promote economic growth,and broaden the development of various industries in China in the future.