Subsidy, the Factor Structure Change and Quality Improvement of Industrial Enterprises Growth
Read
DownLoad |
| Title | Subsidy, the Factor Structure Change and Quality Improvement of Industrial Enterprises Growth
|
| Author | Zhang Tongbin and Ma Liyuan |
| Organization | Dongbei University of Finance and Economics |
| Email | tongbinzhang@126.com；mary0526413@163.com |
| Key Words | Subsidy; Technical Progress Bias; Factor Price Distortion; Growth Quality; PSM and GMM |
| Abstract | Subsidies can affect the factor structure of industrial enterprises leading to technical progress bias and factor price distortion and thus have influence on their growth quality. This paper analyzed the effects of subsidies on the quality of industrial enterprises’ growth using the method of Propensity Score Matching (PSM) and Generalized Method of Moments (GMM). The conclusions show that subsidies can weaken the degree of technology progress preferred to capital in industrial enterprises and optimize the factor distribution structure so that labor or capital can make significant contribution to the value formation. Then the positive effects of subsidies on the quality of industrial enterprises growth are gradually revealed. In addition, generally, subsidies can reduce the degree of factor price distortion, make the marginal output and factor cost match well and improve the structure of factor income distribution. Therefore, changes in the factor price distortion caused by subsidies do promote the quality of industrial enterprises growth. However, subsidies can not lessen the degree of price distortion and may not play a positive role on enhancing the quality of enterprises’ growth in case of the high degree of price distortions. |
| Serial Number | WP879 |
| Time | 2015-05-22 |
|