Research on the Promoting Effect of Allocation Mode of Industrial Subsidies on the Total Factor Productivity of Enterprises——An Empirical Analysis Based on Listed Companies in Equipment Manufacturing Industry
LI Chun-lin, XU Xue-lu, LIU Hang
School of Economics and Finance, Xi’an Jiaotong University, Xi’an 710061, China
Government subsidy is one of the important means of the industrial policy, but the distortion effect on the allocation of resources is also growing. Compared with the selective subsidy, competitive subsidy has less negative effect on market order, and is more conducive to promoting enterprise innovation as well as improving the total factor productivity. This article uses the unbalanced panel data of 673 listed companies in equipment manufacturing industry and empirically tests the relationship between competitive subsidy and enterprises’ total factor productivity. The results show that the lower concentration degree of government subsidy in the industry, the more benefit to the raise of TFP, which means competitive subsidy can significantly promote the total factor productivity. In terms of the decomposed indexes of TFP, the technical change (TC) and the efficiency of scale change (SEC) are more likely to get positive contribution from competitive subsidies, while the efficiency of technical change (TEC) would get negative effect from them. In order to promote the reform of the supply side and industrial transformation and upgrading, China should further deepen the innovation of the industrial policy and take competitive and beneficial fiscal support to reduce the governmental excessive intervention on resource allocation mechanism.
LI Chun-lin, XU Xue-lu, LIU Hang.Research on the Promoting Effect of Allocation Mode of Industrial Subsidies on the Total Factor Productivity of Enterprises——An Empirical Analysis Based on Listed Companies in Equipment Manufacturing Industry[J] Economic Survey, 2017,V34(4): 99-104