Research On The Impact Of Government Subsidies On TFP Of Equipment Manufacturing Enterprises In Heilongjiang Province

Equipment manufacturing industry is the core part of manufacturing industry.It affects a country’s economic development and national security.Its development degree can reflect the comprehensive strength of a region.As one of the old industrial bases in Northeast China,Heilongjiang Province has already possessed a relatively large industrial system of equipment manufacturing industry,forming two equipment manufacturing agglomeration centers with Harbin and Qiqihar as the core,Daqing,Jiamusi,Jixi and other special equipment industrial zones.However,the equipment manufacturing industry in Heilongjiang Province is still in a large but not strong stage,such as low technology level,low production efficiency and other problems,leading to the obvious lag and lack of competitiveness of the industry,transformation and upgrading become the only way for equipment manufacturing industry.The reason may be the historical legacy of the planned economy system.Most of the equipment manufacturing industry in Heilongjiang Province is the product of the national layout under the planned economic system.Local governments intervene in the development of equipment manufacturing industry through government subsidies and other means.However,with the implementation of the subsidy policy,the local government has excessive subsidies and blind subsidies to equipment manufacturing enterprises in Heilongjiang Province.In order to vigorously revitalize the equipment manufacturing industry in Heilongjiang Province,it is necessary to study the impact of government subsidies on the TFP of the equipment manufacturing industry in Heilongjiang Province from the perspective of government intervention.Based on the classification and characteristics of equipment manufacturing industry,the retrospect of TFP measurement methods of micro-enterprises and the theoretical basis of the effect of government subsidies on TFP of enterprises,this paper firstly analyses the development status of equipment manufacturing enterprises in Heilongjiang Province from the perspective of ownership type and enterprise scale;secondly,according to the database of China’s Industrial Enterprises from 1998 to 2007,it constructs equipment manufacturing industry in Heilongjiang Province.Based on the panel data of enterprises,OLS,fixed effect method and OP method are used to calculate the total factor productivity at the enterprise level,and the results of the three methods are compared.Then,based on the calculation results of OP method,the dynamic changes of total factor productivity of equipment manufacturing enterprises in Heilongjiang Province are investigated in detail from two aspects of overall and sub-industries,and the different scale of enterprises and different types of ownership are also studied.The dynamic change of total factor productivity(TFP)in Heilongjiang Province is analyzed by variance analysis.Then,the efficiency differences of equipment manufacturing enterprises with different scale and ownership are verified by variance analysis.Then,the influence of government subsidy on TFP of equipment manufacturing enterprises in Heilongjiang Province is analyzed by fixed effect model,and the heterogeneity of government subsidy effect among different enterprises is further analyzed.The paper puts forward policy suggestions to promote TFP of equipment manufacturing industry in Heilongjiang Province from four aspects:developing advantageous industries,giving priority to developing high-efficiency industries,supporting low-efficiency industries,abandoning "ownership discrimination" and "scale discrimination".Equipment manufacturing industry is the core part of manufacturing industry.It affects a country’s economic development and national security.Its development degree can reflect the comprehensive strength of a region.As one of the old industrial bases in Northeast China,Heilongjiang Province has already possessed a relatively large industrial system of equipment manufacturing industry,forming two equipment manufacturing agglomeration centers with Harbin and Qiqihar as the core,Daqing,Jiamusi,Jixi and other special equipment industrial zones.However,the equipment manufacturing industry in Heilongjiang Province is still in a large but not strong stage,such as low technology level,low production efficiency and other problems,leading to the obvious lag and lack of competitiveness of the industry,transformation and upgrading become the only way for equipment manufacturing industry The reason may be the historical legacy of the planned economy system.Most of the equipment manufacturing industry in Heilongjiang Province is the product of the national layout under the planned economic system.Local governments intervene in the development of equipment manufacturing industry through government subsidies and other means However,with the implementation of the subsidy policy,the local government has excessive subsidies and blind subsidies to equipment manufacturing enterprises in Heilongjiang Province.In order to vigorously revitalize the equipment manufacturing industry in Heilongjiang Province,it is necessary to study the impact of government subsidies on the TFP of the equipment manufacturing industry in Heilongjiang Province from the perspective of government intervention.Based on the classification and characteristics of equipment manufacturing industry,the retrospect of TFP measurement methods of micro-enterprises and the theoretical basis of the effect of government subsidies on TFP of enterprises,this paper firstly analyses the development status of equipment manufacturing enterprises in Heilongjiang Province from the perspective of ownership type and enterprise scale;secondly,according to the database of China’s Industrial Enterprises from 1998 to 2007,it constructs equipment manufacturing industry in Heilongjiang Province.Based on the panel data of enterprises,OLS,fixed effect method and OP method are used to calculate the total factor productivity at the enterprise level,and the results of the three methods are compared.Then,based on the calculation results of OP method,the dynamic changes of total factor productivity of equipment manufacturing enterprises in Heilongjiang Province are investigated in detail from two aspects of overall and sub-industries,and the different scale of enterprises and different types of ownership are also studied.The dynamic change of total factor productivity(TFP)in Heilongjiang Province is analyzed by variance analysis.Then,the efficiency differences of equipment manufacturing enterprises with different scale and ownership are verified by variance analysis.Then,the influence of government subsidy on TFP of equipment manufacturing enterprises in Heilongjiang Province is analyzed by fixed effect model,and the heterogeneity of government subsidy effect among different enterprises is further analyzed.The paper puts forward policy suggestions to promote TFP of equipment manufacturing industry in Heilongjiang Province from four aspects:developing advantageous industries,giving priority to developing high-efficiency industries,supporting low-efficiency industries,abandoning "ownership discrimination" and "scale discrimination".