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People say: in order to improve the total factor productivity to promote high quality development

CAI

In November 2018 09, 07:20 source: 138479.xyz: People's daily

 

Abstract: to improve the total factor productivity is a source of high quality development, has important significance on building socialism modernization of our country in a new journey for the comprehensive well-off society and. Total factor productivity is essentially a kind of resource allocation efficiency, optimize the industrial structure, enterprise competition and innovation competition brought about by the reallocation of resources can improve the total factor productivity. In order to improve the total factor productivity to promote high quality development, the key is to deal with the relationship between government and the market, improve and optimize the allocation of resources institutional mechanisms and policy measures.

The party's report made by the rapid growth of China's economy has great stage to judge the high quality development stage, put forward to improve the pressing requirements of tfp. In the party's National Congress report on TFP request, highlights the importance of this index for China in building a well-off society and building a modern socialist country opens a new journey. To improve the correct understanding of the connotation and the request of TFP, helps to identify the key areas of reform, to better promote the development of high quality.

Total factor productivity is a source of high quality development

The economic history shows that the level of total factor productivity can explain the success of a country's economic development to a great extent. The performance comparison before and after the development of China's reform and opening up, also shows that the key to improve the effect of tfp. For a long time, we have to improve the labor productivity per unit of labor input to create value as an important indicator of the level of economic development, quality and sustainability. This index is highly integrated and can be used as an important standard to measure the quality of economic development. At the same time, we should also see that the total factor productivity can better balance the purpose and means of high quality development, provide a sustainable way to improve labor productivity. We can understand the relation between the three ways to increase the productivity of the two.

One is to increase the capital labor ratio. Through the use of more scientific and technological content, more efficient machines can increase the capital labor ratio, and increase the output value of each worker. However, increase the capital labor ratio is conditional and limit, if the increase too fast, more than the workers skills limit, there will be a decline in investment returns, but the results will reduce the efficiency of resource allocation. In recent years, the number of China's labor force decreased, accelerating the rising wages of ordinary workers, many enterprises tend to use more machinery and equipment. But in some enterprises, workers skills and other conditions did not increase, but lead to decline in investment returns.

The two is to enhance the level of human capital. Economists usually use their average years of schooling to measure human capital, increase the average years of education workers can significantly promote economic growth. But workers significantly increased the average years of education need time. For example, the development of education in the popularization of nine-year compulsory education and college enrollment as the representative, making China one of the world's fastest growing countries in education. Even so, according to the United Nations Development Programme, "human development report" data in 1990 - 2000, 2000 - 2010 years and 2010 years, 2017 years time, China's 25 over the age of the adult population average years of schooling were only increased by 1.7, 0.8 and 0.5. Therefore, increasing human capital to promote economic growth is significant, but not in a short period of time can be achieved.

The three is to improve total factor productivity. The economists found in the decomposition of economic growth, investment in capital and labor, human capital growth does not fully explain the growth of output, thus summed up that part of the source of growth beyond the contribution of production factors for total factor productivity. For example, we mean GDP 1978 to 2010 (GDP) growth rate analysis, found that capital accumulation and labor number and the average schooling of the 3 factors of production variables can only explain the growth rate of 76.1%, the remaining 23.9% is the total factor productivity contribution. Due to the improvement of total factor productivity is through more efficient allocation and use of these elements in the input set conditions, therefore, it is to improve labor productivity and power source to realize high quality development.

A special stage of transformation and population 30 years ago, China's reform and opening up are coincident, population variation during this period is the rapid growth of the working age population, non working age population is almost zero growth. The "health of the public, the lack of food" population structure has opened a window of opportunity, respectively, adequate supply of labor from the high savings rate and high return of capital and resource allocation, re created the demographic dividend, and the transformation of economic growth through reform and opening up. With the working age population after 2010 to negative growth, dependency ratio of population increase, accelerate the traditional demographic dividend disappeared, the factors of production driven economic growth difficult to continue. Therefore, China's economy to maintain rapid growth, to a new level, it is necessary to turn to the high quality development in order to improve the total factor productivity is the main way.

Total factor productivity is essentially a kind of resource allocation efficiency

Referring to the research achievements of development economics, the successful experiences and lessons, summed up the developing economies to promote the development of it can be found that TFP is essentially a kind of resource allocation efficiency.

The optimization of the industrial structure brings the reallocation of resources can improve the total factor productivity. With the change of industrial structure economic growth, is a process of improving the productivity of the target and follow the order of evolution. Production factors especially labor from low productivity industries into high productivity industry, can improve the resource allocation efficiency of the whole economy. Many of China's economic development process in the econometric analysis also shows that labor productivity or total factor productivity, bring the optimization of the industrial structure has played an important role in the redistribution of resources. For example, in 2015 1978, the overall labor productivity in the first industry, the second industry and the third industry's contribution amounted to 56%, while the remaining 44% of the contribution came from Labor Reallocation among three industries.

The enterprise competition brings the reallocation of resources can improve the total factor productivity. In the market competition mechanism, competitive enterprises to survive and grow, there is no competitive enterprises wither away can promote the optimal allocation of resources, improve the total factor productivity. In general, the developing countries will be more from the reallocation of resources between industries to achieve the increase of TFP, while the developed countries are more from the reallocation of resources between enterprises in the implementation of the increase of tfp. In some developed countries, enterprises to enter and exit as well as survival and demise of the increase of TFP contribution can be as high as 1/3 to half.

Innovation competition brings the reallocation of resources can improve the total factor productivity. Economics study, innovation will bring increasing returns to scale, enterprises can expand the scale of production and to obtain more resources, fundamentally depends on its innovation ability. This means that the innovation competition brought about by the reallocation of resources can improve the total factor productivity, and using the method of non market competition to expand the scale of the enterprise or the person picking winners, are contrary to the requirements of total factor productivity.

Correctly handle the relationship between government and market is the key to improve the total factor productivity

Understanding of the total factor productivity from the efficiency of resource allocation perspective, for provide beneficial enlightenment to improve the appropriate starting point of total factor productivity. The party's report stressed that make the market play a decisive role in the allocation of resources, better play the role of government, which is focusing on improving the total factor productivity must follow the principle of reform. In order to improve the total factor productivity to promote high quality development, the key is to deal with the relationship between government and the market, improve and optimize the allocation of resources institutional mechanisms and policy measures.

To the "visible hand" to build and maintain the market "invisible hand" give full play to the role of institutional mechanisms. At the macro level, should be established to encourage innovation and enterprise quality and efficiency oriented market incentive mechanism. At the micro level, the government does not need to find direct policy starting point, not artificial picking winners. The absence of government cannot be replaced function is to create equal use of production factors and fair competition in the market, allowing free entry and exit mechanism of fair competition and survival of the fittest environment. The relevant reforms include improving the business environment, business license and eliminate factors of ownership and scale discrimination, to break the monopoly of the industry, barriers to entry, local protection.

To eliminate institutional obstacles to the free movement of factors of production. Among them, the most obvious household registration system reform bonus. Accelerate the reform of household registration system, promote the people of migrant workers, can promote the transfer of labor from low productivity to high productivity, optimize the allocation of resources, and improve the total factor productivity. Our study shows that from labor flow in each one percentage point of total factor productivity improvement, can achieve the same level of economic growth rate.

In the technical research and development and continue to increase investment in education and training and promote public entrepreneurship, innovation. At any time, technology progress is the source of the total factor productivity. In addition to direct human capital has become a source of increasing labor productivity, is a necessary condition to improve total factor productivity.

Improve the policy mechanism to tfp. If the economic policies of the division of labor is not clear, operation coordination, fiscal and monetary policies short-term regulation in the implementation of the policy of anti periodic function, industrial policy function is given to stimulate long-term economic growth, often cause problems of overcapacity, high leverage, will damage to a certain extent market allocation of resources the winner. Nineteen big reports of the party put forward a sound mechanism for the coordination of fiscal and monetary, industrial and regional economic policy, benefit from the target and means to separate the fiscal and monetary policy and industrial policy, the duties, coordination, promote sustained and healthy economic and social development.

(the author is vice president, Chinese academician of the Academy of Social Sciences)

"People's Daily" (11 2018 09 07 on April edition)

(commissioning editor Wang Yuefang and Wan Peng)
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