The Impact Of Industrial Structure Adjustment On Total Factor Productivity

As China’s economy enters the "new normal",the high growth trend that has lasted for more than 30 years is gradually slowing down,and the advantages of resource dividend,investment dividend and demographic dividend that support China’s high economic growth are weakening,and the contradictions of insufficient economic growth momentum,overcapacity and low technical efficiency are gradually revealed.In this context,how to improve the allocation efficiency of production factors through the optimization and adjustment of industrial structure,increase total factor productivity,and then achieve high quality of economic development is an urgent issue to be considered.Since China’s regional economic development has long adopted an unbalanced development strategy,and the differences in development levels will affect the effect of economic restructuring on economic growth,the adjustment of industrial structure in different periods and different demand structures will have different effects on total factor productivity,so it is important to explore the effect of industrial restructuring on total factor productivity in China by region and urban development stage,which has important theoretical and Therefore,it is of great theoretical and practical significance to explore the impact of industrial restructuring on total factor productivity in China by region and urban development stage.First,the article analyzes the mechanism of the impact of industrial restructuring on total factor productivity from two perspectives: factors can flow freely enough and factors cannot flow freely enough.However,in the short run,the impact of industrial structure rationalization and industrial restructuring on total factor productivity is not always positive due to the fact that technological progress may occur in lowtechnology-intensive industries and government interventions.and the effects of both may not be consistent.In the case of insufficient free flow of factors,industrial restructuring does not necessarily increase total factor productivity when government intervention,biased technological progress,and the specialization of capital constrain the flow of factors.Then,based on the panel data of 284 prefecture-level and above cities in China from 2003-2018,the article constructs an econometric model of the impact of industrial restructuring and urban total factor productivity from two dimensions of industrial structure rationalization and advanced adjustment,and applies a fixed-effects model for empirical testing.The results show that,at the overall level,the rationalization of industrial structure has a significant positive effect on urban total factor productivity improvement,while the advanced industrial structure has a negative effect on urban total factor productivity.Since the impact of industrial structure adjustment on total factor productivity is constrained by the region in which it is located,the stage of economic development and the scale of cities,heterogeneity analysis is conducted in this paper,and the results show that: from the regional level,the improvement of urban total factor productivity in central region is obtained from the rationalization adjustment of industrial structure,and the improvement of urban total factor productivity in western region is obtained from the advanced adjustment of industrial structure;from the stage of economic development At the level of economic development,both the rationalization and advanced adjustment of industrial structure exhibit a suppressive effect on total factor productivity in regions at the industrialization stage,and the rationalization of industrial structure can promote total factor productivity in regions at the urbanization stage;at the level of urban population,the rationalization of industrial structure has a significant positive contribution to total factor productivity improvement in medium and large cities,and the advanced adjustment of industrial structure has a significant positive contribution to total factor productivity improvement in In terms of urban population size,rationalization of industrial structure has a significant positive contribution to total factor productivity improvement in medium and large cities,while advanced industrial structure has a negative inhibitory effect on total factor productivity improvement in cities of all sizes.The regression results of four robustness tests,namely,changing the measurement method of urban total factor productivity,replacing the calculation method of industrial structure advanced adjustment,changing the sample size and excluding the extreme values,illustrate the reliability and robustness of the research results.Finally,based on the research results of this paper,countermeasure suggestions are proposed to optimize the factor flow environment and stimulate market vitality;fully rationalize adjustment and prudently advanced adjustment;promote the development of productive service industry and improve the efficiency of service industry;target industrial policies to adapt to the stage and scale of urban development;promote technological innovation and increase industrial value added.