The Impact Of Made In China 2025 Industrial Policy On Firms’ Total Factor Productivity

China’s traditional economic development model,which relies heavily on infrastructure investment and low-end manufacturing,will be unsustainable with the basic improvement of infrastructure and the gradual disappearance of the demographic dividend advantage.To address this challenge,the Chinese government formulated the Made in China 2025 industrial policy in 2015,with the goal of improving the independent innovation capability of manufacturing enterprises and achieving transformation and upgrading.This policy provides clear guidelines and development goals for technology industries such as ICT,integrated circuits,new materials,new energy vehicles,biopharmaceuticals,and high-performance medical devices,and provides strong support in terms of funding,policies,and tax incentives.In order to better promote the implementation of the Made in China 2025 plan,further in-depth research on its practical effects and impact mechanisms on enterprise productivity is needed to provide an empirical basis for future industrial policies.Through empirical tests,policy measures can be further improved,the relevance and effectiveness of policies can be enhanced,and the transformation of China’s manufacturing industry can be promoted.At the end of 2020,the global spread of the new crown pneumonia outbreak(COVID-19)caused a huge impact on the economy and development of many countries,leading to a crisis in market demand and global supply chain.The impact of the epidemic has caused manufacturing companies to experience shortages of components,labor disruptions,and the failure to deliver products on time,leading to a slowdown in manufacturing activity and even bankruptcy for several manufacturing companies.How can the government help enterprises to develop better in the post-epidemic period and how can enterprises promote their digital technology and intelligence development?In order to test the above questions,this thesis compares the literature on total factor productivity,financing constraint and total factor productivity,and industrial policy and total factor productivity,and focuses on the impact of the industrial policy of Made in China 2025 on manufacturing enterprises based on the proposed industrial policy of Made in China 2025 and the impact of the new coronary pneumonia epidemic on Chinese manufacturing enterprises.The impact of the industrial policy of "Made in China 2025" on the total factor productivity of enterprises.Firstly,the economic logic of the impact of the proposed industrial policy of Made in China 2025 on the total factor productivity of enterprises is studied;secondly,the theoretical analysis framework of Made in China2025,enterprise financing constraints and total factor productivity of enterprises is constructed on this basis;again,the panel data of China’s A-share listed companies from2010-2019 in Wind database is used as a sample,and the OP and LP methods are applied to The heterogeneity of ownership nature and technological characteristics is taken into account to further analyze the differences in the impact of the industrial policy of Made in China 2025 on enterprises with different ownership nature and technological characteristics;and conclusions are drawn through the relevant studies on the mediating effect of enterprise financing constraints;finally,based on the Finally,based on the empirical results,we propose some policy recommendations for relevant enterprises and governmental decision-making departments.The study finds that: first,the industrial policy of Made in China 2025 promotes total factor productivity of enterprises;second,the industrial policy of Made in China 2025 improves total factor productivity by reducing financing constraints;third,compared with state-owned enterprises,the total factor productivity of non-state-owned enterprises is improved more significantly by Made in China 2025.Fourth,compared with the eastern part,Made in China 2025 has more significant total factor productivity improvement for the central and western enterprises.Based on the research results,this thesis gives the following policy recommendations: first,the government should take into account the actual situation of specific regions when implementing the industrial policy of Made in China 2025 and tailor it to local conditions,and because the policy has a significant promotion effect on non-state-owned enterprises,it should focus on strengthening the policy inclination for the western region and focus on the guidance level to provide better policy support and guidance for state-owned enterprises to help them achieve better development;secondly,the government should start from easing the financing constraints of non-state enterprises,provide assistance to the transformation and development of non-state enterprises through tax preferences and scientific research subsidies,establish technology innovation foundations as well as cooperation platforms for academia,research and enterprises to increase support and promote the transformation and application of scientific and technological achievements;finally,by establishing a perfect talent evaluation mechanism,deepening the joint training mechanism for talents and improving the talent Finally,by establishing a perfect talent evaluation mechanism,deepening the joint cultivation mechanism of talents,and improving the incentive mechanism of talents,we improve the technical level and management level of enterprises,introduce and cultivate talents that meet the needs of enterprises,build a modern technological innovation system,and ensure the smooth development of technological innovation of enterprises.