Research On The Impact Of Total Factor Productivity Shock Based On Production Network

Promoting the upgrading of industrial structure and improving the quality and efficiency of the supply system is a practical choice to adapt to the new normal of China’s economic development.It is also the key to further advance the industrial supply-side structural reform and realize the transformation of industrial growth mode.In this context,analyze and interpret the characteristics of the structure of the production network and define the industries that play an important role in industrial development.It has very realistic significance to scientifically adjust the industrial development track and further optimize our industrial structure.Based on the theory of production network,this paper uses input-output analysis technology and production network to show the changes of industrial structure as the changes of various departments in the network.Moreover,through the input-output relationship between various departments,this paper makes a quantitative analysis on the structural characteristics of production network of various departments in China from an empirical perspective,and further analyzes the spatial effects of the impact of total factor productivity on the impact propagation of total factor productivity of departments.The following conclusions are obtained:(1)From 2007 to 2017,the production network is relatively stable,and there is no problem that the dependence degree of core nodes is too high,which causes great influence on the individual network.Except for individual industries,the production network is connected;(2)From 2007 to 2017,the output value of the following industries increased significantly and remained relatively stable in the top several production network output: leasing,railway transportation,software and information technology services,scrap materials,pipeline transportation,rubber products,non-ferrous metal rolling processing products,synthetic materials,cultural and educational,industrial and aesthetic,sports and entertainment supplies.There is a significant positive correlation between the output of production network sector and the impact of total factor productivity.(3)There is a spatial correlation between the output degree and the input degree of the production network and the growth rate of the total factor productivity of the department.The output degree of the production network department is significantly positively correlated with the impact of the total factor productivity of the department.The department with a large output degree will have a significant impact on the productivity impact of the neighboring departments.(4)The indirect effect of sector output on productivity impact is significant,but the direct effect is not significant enough;Sector entry has significant direct effect on productivity impact,but the indirect effect is not significant.This paper holds that this sector can improve its total factor productivity by establishing economic and technological connections with other downstream sectors,and at the same time improve the total factor productivity of downstream sectors,so as to promote the propagation of productivity shocks.Therefore,it can increase the innovation input of large departments,thus improving the total factor productivity of the industry,driving the improvement of the productivity of other related industries through the downstream transmission channel of the network,and thus driving the improvement of the productivity of the entire production network.