Research On The Mechanism Of Industrial Policy’s Influence On Enterprise Total Factor Productivity

Since the reform and opening-up,China’s economy has maintained a high growth rate for many years,achieving a qualitative leap in economic scale and creating a miracle in the history of world economic development.Entering a new era,the fundamental contradictions of our society have undergone a fundamental change,and the economy has entered the transformation stage of high-quality development.At this special stage of development,the level of total factor productivity has become an important indicator and economic policy objective.As an important component of total factor productivity,enterprise total factor productivity will also become an important focus of China’s industrial policy in the future.In recent years,scholars at home and abroad have conducted extensive research on the impact of industrial policy on enterprise total factor productivity and its mechanism.A series of research results have been achieved.However,since the impact of industrial policy on enterprise total factor productivity is a very complex process with many mechanisms involved,the academic community has not yet reached a consensus on its impact,and the "black box" of its mechanism has not been completely opened.Based on a comprehensive review of existing research,this article defines industrial policy and analyzes the current selective characteristics of industrial policy in China,re-examines the impact of industrial policy on enterprise total factor productivity.The article explores the mechanisms of enterprise strategic innovation from a micro perspective and industry competition intensity from a meso perspective,and extracts industrial policy variables from the five-year plans of the central government and various provinces,autonomous regions,and municipalities during the "Twelfth Five-Year Plan" and "Thirteenth Five-Year Plan" periods.The empirical research is conducted using data from A-share listed companies from 2011 to 2020.The study obtained four main conclusions:(1)During the sample period,the net effect of industrial policy on enterprise total factor productivity in China is negative,which still holds true after various robustness tests.In other words,the inhibitory effect of industrial policy on enterprise total factor productivity is greater than the promoting effect.(2)The impact of industrial policy on enterprise total factor productivity varies significantly depending on the life cycle of the enterprise.During the sample period,the inhibitory effect of industrial policy on enterprise total factor productivity was mainly concentrated in growing enterprises,while the inhibitory effect significantly weakened after enterprises entered the mature and declining periods.(3)Enterprise strategic innovation plays a partially mediating role in the process of industrial policy affecting enterprise total factor productivity,and industrial policy promotes enterprise strategic innovation,which leads to a decrease in enterprise total factor productivity.(4)Industry competition intensity positively moderates the negative net effect of industrial policy on enterprise total factor productivity.