Research On The Impact Of Financial Resource Allocation On Total Factor Productivity

As China’s economy has entered a new normal,it has become one of the hot issues in the field of economics to rationally optimize the allocation of financial resources,transform the mode of economic growth and promote the transformation and upgrading of economic structure.The main way to promote the economic level is to increase the total factor productivity.Reasonable and effective financial resource allocation has a great promotion effect on the improvement of the total factor productivity index.Based on the provincial-level data from 2006 to 2015,this paper analyzes the objective reality of different levels of financial resources allocation in various regions of China,and adopts the methods of literature,empirical analysis and normative analysis.This paper discusses in depth the mechanism of financial resources allocation on total factor productivity,analyzes the formation principle of financial resources misallocation,and empirically studies the impact of financial resources on provincial total factor productivity.In order to further accelerate Chinese economic growth and reduce regional disparities,relevant policy suggestions were put forward.Its main findings are as follows:There is negative correlation between financial resources misallocation and total factor productivity.The higher the financial resources misallocation,the lower the total factor productivity TFP index.Economic fluctuations are detrimental to the growth of total factor productivity and hinder the healthy development of the economy.The positive correlation between open-door,scientific and educational investment and total factor productivity will promote the improvement of TFP.TFP index can be decomposed into TC index of technological progress and TE index of technological efficiency.In order to optimize the allocation of financial resources and improve the utilization efficiency of scarce resources,the following five suggestions are put forward:Reduction of boundary effects between different regions;Strengthen support for small and medium-sized enterprises;Promoting the development of secondary and tertiary industries and helping the central and western provinces to optimize their industrial structures;Reducing the policy orientation of the banking system;Promote the market for interest rates.Only when these five points are achieved will the industrial structure and economic system of each province become more rational and effective,financial resources flow more freely,small and medium-sized enterprises will have more space and opportunities to develop,the utilization rate of financial resources will be increased,and the situation will be more in line with China’s National conditions.