China’s factor reallocation effect considering energy

Decomposing growth rate of total factor productivity(TFP)into internal growth effect and the effect of factor reallocation formed by the flow of capital,labor and energy between sectors,we took 23 subsectors as the research object and adopted the multi-sector growth accounting framework(MSGAF)to verify the‘structural bonus hypothesis’from 2005 to 2017.The study drew the following conclusions:First,internal growth effect represented by sectoral technology progress was still the main contributor to TFP growth of the overall economy,but the contribution rate had decreased.Second,the reallocation effect of capital changed from structural burden to structural bonus.Third,the reallocation effect of labor showed a trend of first rising and then falling,changing from structural bonus to structural burden.Forth,the effect of energy reallocation was gradually emerging,with a shift from structural burden to structural bonus.Based on these research results,we argue that more attention should be paid to the efficiency of factor reallocation in addition to the technology progress.The inefficiency of factor reallocation caused by imperfect market and asymmetric information would partially offset the effect of technology progress and hinder the high-quality economic development.In view of the reallocation of capital,labor and energy,we propose the following suggestions:For capital,macro-control and market mechanism should be comprehensively accounted for.Further,capital must be allocated per the principle of profit maximization to ensure that its elasticity and allocation efficiency will be improved.The reallocation of labor should not only be limited to the 3-sector level.More attention should be paid to the marginal output differences within the secondary sector.For energy,attention should be paid to the elasticity of energy output between sectors to avoid inefficient allocation.It is also necessary to accelerate the phase-out of industries with high energy consumption and high pollution,promote the development of low energy industries to encourage‘energy conservation and emission reduction’as well as‘green development’by increasing the effect of energy reallocation.

An Empirical Study of China＇s Energy- Intensive Industries＇ Growth Based on Environmental Total Factor Productivity

Using directional distance function and nonparametric data envelopment analys＆, th＆ paper estimates the environmental total factor productivity （ETFP） of energy-intensive industries in China from 1995 to 2010, and performs an empirical analysis on factors affecting ETFP growth after studying the differences of energy-intensive industries ＇ ETFP by industries and provinces. The findings include the following： energy-intensive industries ＇ETFP growth is mainly driven by technical progress; China, at its current development stage, still has the potential to raise the productivity of its energy- intensive industries. By estimating the provincial data, we find that the ETFP growth of different provinces converge at different levels. Further market liberalization, increased FDl flows and reductions in energy intensity will help to improve each province＇s ETFP growth. In addition, increasing investment in energy saving and emissions reduction and improving corporate environmental management capacity can help to reduce a company＇s short-term cost of complying with environmental regulations.