The Impact of the Establishment of National High-tech Zones on Total Factor Productivity of Chinese Enterprises

The National High-tech Zone(NHTZs)is an important strategic platform for cultivating high-tech industries and realizing high-quality economic development in China.Based on the combined data from 2006 to 2014 of the industrial enterprise database,the customs database,and the China Development Zones Audit and Announcement Catalogue(abbreviated asthe Catalogue),this paper systematically investigates the influence of the construction of NHTZs on enterprise’s total factor productivity(TFP).Results show that NHTZs have a positive impact on the TFP of enterprises in the zone,and this conclusion is still valid after considering endogeneity problems.Furthermore,the above productivity effects of NHTZs are heterogeneous in terms of enterprise ownership,external environment and establishment time,and NHTZs have greater stimulation effects on enterprise productivity after comparing with other types of functional zones.An investigation of the specific mechanisms at play shows that NHTZs promote the TFP of enterprises in the zone through the release of preferential policies,strengthening the“technology spillover effects”of imported intermediate goods,enhancing enterprise’s innovation ability and attracting talent.In addition,based on the decomposition of industry productivity,this paper also investigates the impact of NHTZs on changes in industry productivity and finds that NHTZs promote the overall productivity of specific industries mainly by stimulating the productivity improvement of incumbent enterprises and expanding the market share of high-productivity enterprises.Moreover,the preferential policies of NHTZs do not significantly stimulate high-productivity enterprises to enter the zones,nor do they cause low-productivity enterprises to exit.This research is helpful in objectively evaluating the economic effects of the NHTZs in China and in providing a theoretical basis for its further adjustment.

SPECIAL ISSUE： DISTRIBUTION OF NATIONAL INCOME IN A TRANSITIONAL ECONOMY Labor income shares （LIS） in economic development： an empirical study based on China＇s sectoral-level data

Empirical study of sectoral-level change in LIS in China reveals that change in industry structure is synchronous and positively correlated with LIS in different sectors of the economy, intensifying overall LIS fluctuations. Our analysis of LIS based on data from the major sectors of China＇s economy show that, relative to 1993, the increase in LIS in 1996 was largely due to the increased proportion of LIS in secondary industry. Relative to 1996, the fall in LIS in 2003 was closely related to the fall in the proportion of primary industry in the overall economy. The year 2004 was unusual in that it witnessed a dramatic fall in overall LIS level. The primary reason for the fall was a change in statistical definition that led to a significant reduction in LIS in the secondary and tertiary sectors. There were huge variations in LIS level among different regions. However, with the passage of time, the regional disparities are gradually being reduced. This is also closely connected to changes in industry structure and within-sector LIS fluctuations.