Government Subsidies,R&D Investment,and Total Factor Productivity

Government subsidies help enterprises achieve specific economic goals,and have a profound impact on enterprise R&D investment and Total factor productivity.The report of the 19 th National Congress of the Communist Party of China pointed out that improving the Total factor productivity of enterprises not only meets the development requirements of enterprise structure optimization,transformation and upgrading in the new era,but also provides a source of power for enterprises to achieve sustainable economic growth.However,a large number of research results show that the Total factor productivity of Chinese enterprises is still at a low level.’Large but not strong,comprehensive but not precise’ is a true portrayal of China’s manufacturing enterprises at present,and it is also a key obstacle to achieving high-quality development of China’s manufacturing enterprises.Therefore,exploring the path to improving total factor productivity of enterprises is an inevitable choice for achieving high-quality development of enterprises.To improve Total factor productivity,on the one hand,institutional barriers need to be eliminated through institutional innovation to improve the efficiency of resource allocation;On the other hand,it is necessary to promote the optimization and upgrading of industrial structure through technological innovation.Therefore,increasing innovation investment and enhancing innovation intensity is the only way to speed up the improvement of Total factor productivity of enterprises.However,due to the problems of Externality and information asymmetry of enterprises,manufacturing enterprises are facing serious financing constraints and technological innovation risks.The government needs to release the advantageous signals of enterprises’ R&D capabilities and value creation capabilities,alleviate the problem of information asymmetry between enterprises and external investors,help enterprises expand financing channels,stimulate enterprises to increase R&D investment,and ensure that enterprises are under the established conditions of other production factors,Improve the additional production efficiency of enterprises and promote the improvement of Total factor productivity of enterprises.However,by reviewing existing literature,it has been found that the effectiveness of government subsidies has been difficult to gain recognition from the academic community.In order to deeply explore the impact and mechanism of government subsidies,R&D investment and Total factor productivity,this paper explores them from three aspects: theoretical research,practical analysis and empirical results.Firstly,start with theoretical research.Through combing a large number of literature,we summarized the measurement methods and influencing factors of Total factor productivity,as well as the effect and formation mechanism of government subsidies,R&D investment and enterprise Total factor productivity.Secondly,analyze from a practical perspective.According to the statistical analysis results,the Total factor productivity of listed manufacturing enterprises in China fluctuates to a certain extent.There is a large difference between the maximum and minimum values,and the amount of government subsidies received by enterprises is also very different.Once again,in terms of empirical research,this article selects data from 496 listed manufacturing companies in China from 2013 to 2020 to test all hypotheses one by one.The conclusion shows that:(1)with government subsidies and financing constraints as threshold variables,the impact of government subsidies on R&D investment shows significant changes in different threshold intervals,and financing constraints have a dual threshold effect;(2)Enterprise R&D investment plays a positive role in promoting Total factor productivity,and equity concentration plays a positive moderating role between the two.Finally,based on empirical research in this article,conclusions are drawn and suggestions are made for the current fiscal subsidy policy in China.Further improving Total factor productivity is an important way to promote manufacturing enterprises to move towards a Dual circulation.Further exploring the path of government subsidies,R&D investment and Total factor productivity has practical significance for the manufacturing industry to promote the upgrading and optimization of industrial structure,promote new industrialization,and promote high-quality economic development.