Public Subsidies And Total Factor Productivity Of Manufacturing Enterprises:the Moderating Role Of Knowledge Spillovers

Since the reform and opening up,China’s gross domestic product has increased continuously,and the overall economic level has risen steadily.Now China has become the second largest economy in the world.However,as the economy gradually exposed the problems of insufficient development of high-end industries and low production efficiency,China has put forward the slogans of supply-side structural reform and accelerating the construction of an innovative country,emphasizing the importance of innovation for China’s economic development.In the context of the deployment and implementation of the "science and technology power" strategy,the central government has also tried to stimulate micro individuals to carry out research and development activities by increasing the financial expenditure on science and technology,and has achieved fruitful results.The manufacturing industry,which is the basis of China’s real economy,has benefited greatly,and the advanced manufacturing industry supported by the government has developed rapidly.At the same time,due to the externality of knowledge,the innovative R&D achievements of manufacturing enterprises developed under the support of the government have knowledge spillovers.Therefore,under the background of increasing public subsidies year by year,it is of great significance to study whether public subsidies can improve the production efficiency of manufacturing enterprises and what role knowledge spillovers play in it.In order to study the above issues,at the level of theoretical analysis,this paper combs the concepts and estimation methods of public subsidies,knowledge spillovers and total factor productivity,the factors that affect total factor productivity,how public subsidies affect enterprise total factor productivity and the impact of knowledge spillovers on innovation and research,and has a preliminary understanding of the relationship between public subsidies,knowledge spillovers and enterprise total factor productivity.On the practical level,through descriptive statistics,this paper finds that China’s public subsidies and enterprise total factor productivity showed an overall upward trend from 2003 to 2021.It can be intuitively seen that there is a certain relationship between public subsidies and enterprise total factor productivity,and the relationship is positive correlation.Then in the empirical research,this paper adopts the knowledge spillover measurement method constructed by Wang Wenyi and others according to the spatial localization characteristics,takes A-share manufacturing listed companies as the research object,uses the data from 2003 to 2021 to establish a regression model and conduct empirical analysis and research,and finally obtains the following conclusions: First,for manufacturing enterprises,The public subsidies received by enterprises in the current period will promote the growth of total factor productivity of enterprises;Second,for manufacturing enterprises,knowledge spillovers gathered within the region will enhance the role of public subsidies in promoting the total factor productivity of enterprises,and knowledge spillovers can encourage enterprises to use subsidy funds for production and operation activities such as research and development activities to improve productivity,thereby improving the total factor productivity of enterprises;Third,the relationship between public subsidies,knowledge spillovers and total factor productivity of enterprises will be affected by the nature of enterprise equity and the degree of regional economic development.First of all,the public subsidies of non-state-owned enterprises have a significant positive impact on the improvement of total factor productivity of enterprises in the current period;Secondly,the knowledge spillover of non-state-owned enterprises will strengthen the role of public subsidies in promoting the growth of enterprises’ total factor productivity;Finally,the public subsidies received by enterprises located in the east can also stimulate the growth of enterprises’ total factor productivity,and the knowledge spillovers absorbed by enterprises in the east will enhance the positive impact of public subsidies on the growth of enterprises’ total factor productivity.