TITLE:
An Empirical Study on Externality and Total Factor Productivity of Manufacturing Industry in China
AUTHORS:
Yiyao Zhang
KEYWORDS:
Externalities, TFP, Classification of Manufacturing Industry, Spatial Econometric
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.5 No.3,
April
6,
2017
ABSTRACT: This paper uses the data provided by the China Economic Census Yearbook in 2004, 2008 and 2013 to measure the TFP of the whole manufacturing and labor-intensive, capital-intensive and technology-intensive industries of 29 provinces. By constructing spatial econometric model between externality of MAR, Jacobs, Porter and TFP, and the empirical outcome shows that only MAR externality has a significant negative effect on TFP of the whole manufacturing, that is, reducing the specialization of the manufacturing industry can improve the total factor productivity. At the same time, the specific effects of the three externalities on the TFP of the manufacturing industry will be different due to the different types of industries.