Abstract:
The loss of total factor productivity caused by mispairing of resources is not negligible, which in China has been extensively concerned by government and scholars. A test of the effects of mispairing of resources on total factor productivity in terms of production distortion, factor distortion and interaction of the former two finds the loss of TFP, the total of manufactory production, caused by general distortion by way of mispairing of resources is enormous and annually increasing, especially the branches of manufacturing industry, whose losses differ prominently. Neither the loss of TFP caused by energy distortion by way of mispairing of resources In energy industry is negligible and causes great losses together with production distortion, for which the strength policy of resources is one of primary elements. The effects of interaction between production distortion and element distortion on TFP by way of mispairing of resources shapes a transmitting mechanism of next mispairing of resources, which increases or reduces effects of impairing of resources on TFP through production and element distortions. To raise the TFP of Chinese manufacturing industry, a combination of emphatic harnessing and diverse harnessing should be introduced to improve impairing of resources in different branches of the industry. Meanwhile the impairing of resources caused by production and element distortions should be harnessed and the losses of the TFP should be taken into account when working out strength policies.
