Research On The Impact Of Administrative Approval Reform On The Total Factor Productivity Of China

Since the reform and opening up,China has implemented three rounds of administrative approval reforms at different stages of economic.In 2013,the latest round of national administrative approval reforms was initiated by the new government to address the lack of growth momentum and the weakening international trade situation facing our economy.At the same time,the 18 th National Congress of the Communist Party of China established the market to allocate resources in a decisive role.The key tone of the policy is to comprehensively push governments at all levels to cancel and decentralize various examination and approval authorities in the economic field in order to release the vitality of economic growth.As an important indicator of economic efficiency reform,total factor productivity depends on the optimal allocation of production factors in the economy.The deepening of China’s administrative approval reform will have an important impact on total factor productivity.Therefore,under the dual background of China’s economic upgrading and the advancement of administrative approval reform,it is of great significance to study the impact of administrative approval reform on China’s total factor productivity.The article first expounds the mechanism of the administrative approval reform by influencing regional industrial agglomeration and technological innovation to promote the growth rate of total factor from theories of external economy,transaction costs,and competitive advantages.Secondly,the article fully discusses and statistically analyzes the historical events,prominent issues and characteristics of the three-stage administrative approval reform in China.At last,based on the panel data of 271prefecture-level cities in China from 2003 to 2015,the article uses an empirical doubledifference method to empirically test the impact of administrative approval reforms on urban total factor productivity and its mechanism.The research results show that: first,the administrative approval reform has increased the total factor productivity of the city by 2 percentage points on average,and the administrative approval reform has improved the total factor productivity through two mechanisms of industrial agglomeration and technological innovation;The effects of productivity are heterogeneous in location and time:(1)The third round of administrative approval reform carried out by the new government has a greater impact on total factor productivity than the previous two rounds of reform;(2)The effect of administrative approval reform on the improvement of total factor productivity in the central region is more significant.The policy implications of this article are: first,the administrative approval center must establish and improve the communication and docking functions of universities,scientific research institutions and enterprise technology departments;second,local governments must strengthen the agglomeration effect of regional economic growth and promote the specialization of local enterprises Division of production and optimization of industrial structure;Third,provincial and local governments can establish benchmarking awareness through prefecture-level cities to accelerate the pace of reform of county-level administrative approval systems;fourth,they must fully seize the opportunities of the Internet era and accelerate the online service hall Construction,optimize service and promote resource sharing.