Research On The Impact Of Chinese Government Subsidies On Total Factor Productivity In Manufacturing

As the backbone of the Chinese real economy,the manufacturing industry plays an important role in promoting the high-quality development of the Chinese economy.Under the background of economic structural transformation and industrial structural upgrading,improving the total factor productivity of manufacturing industry has become the key to realizing a qualitative leap in the Chinese.In response to the call of the 20 th Party Congress to accelerate the modernization of the economic system,China needs to take a series of measures to promote the development and upgrading of the manufacturing industry,in order to achieve the goal of bringing the overall level of China’s manufacturing industry to that of the middle level of the world’s manufacturing power camp by 2035.As an important measure to improve the Chinese total factor productivity,government subsidies play an important guiding and guarantee role in improving the quality of enterprise development and promoting the green transformation of the manufacturing industry.Therefore,this thesis will conduct a study on the mechanism of the impact of government subsidies on the total factor productivity of the Chinese manufacturing enterprises and discuss such as how the government should subsidize enterprises,how much subsidies should be provided,and which types of enterprises should be subsidized to maximize the total factor productivity of enterprises.Firstly,at the theoretical analysis level,this thesis analyzes the measurement methods,influencing factors and effects of government subsidies on total factor productivity through a literature review,and elaborates the influence mechanism of government subsidies on total factor productivity in manufacturing.Secondly,at the level of reality analysis,this thesis analyzes the development status of government subsidies and total factor productivity in manufacturing.Thirdly,at the empirical research level,the LP method is selected to calculate the total factor productivity of manufacturing enterprises and construct a threshold effect model,and the financial data of the manufacturing industry of listed companies in China from 2010 to2020 are used as research samples to analyze the impact of government subsidies on the total factor productivity of manufacturing enterprises.Finally,according to the research conclusions,countermeasures and suggestions are put forward to improve the efficiency of government subsidies.The empirical research results show that:(1)Government subsidies will significantly increase the total factor productivity of the manufacturing industry;(2)The threshold effect test results show that the manufacturing industry has a threshold effect on the total factor productivity of enterprises,and the promotion effect is more significant when the R&D investment is less than the threshold value,and the results have passed the robustness test;(3)The results of the classification inspection of the manufacturing industry show that government subsidies have a more significant promotion effect on high-tech industries,non-state-owned enterprises,and large enterprises,and more obvious promotion effects on enterprises with R&D investment less than the threshold.Finally,based on the above theoretical and empirical analysis,this thesis puts forward corresponding policy suggestions to improve the efficiency of government subsidies.