IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v150y2020ics004016251931073x.html
   My bibliography  Save this article

Driving total factor productivity: Capital and labor with tax allocation

Author

Listed:
  • Xu, Bing
  • Sendra-García, Javier
  • Gao, Yanxia
  • Chen, Xiaohui

Abstract

In small and micro enterprises, the capital and labor input change frequently with time, which is difficult to observe directly. Therefore, it is a challenging problem to measure total factor productivity, the source of sustainable economic growth. This paper establishes a new time-varying production function model to measure the Total Factor Productivity for small and micro enterprises, as well as its corresponding technological progress and efficiency improvement. Based on the data of 7158 small and micro enterprises in Yuhuan China Auto Parts City. The results of this paper find that Total factor productivity is mainly attributed to technological progress, which is mainly driven by labor force. Efficiency improvement is also changing in the same direction as labor-driven efficiency improvement Human resource management may be the main reason for low efficiency. As a policy implication of our results, this paper designs a policy allocation using delaying tax payment and proper tax policy allocation. The economic and social benefits of enterprises can be balanced and total factor productivity can be promoted.

Suggested Citation

  • Xu, Bing & Sendra-García, Javier & Gao, Yanxia & Chen, Xiaohui, 2020. "Driving total factor productivity: Capital and labor with tax allocation," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:tefoso:v:150:y:2020:i:c:s004016251931073x
    DOI: 10.1016/j.techfore.2019.119782
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004016251931073X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2019.119782?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Philippe Aghion & Jing Cai & Mathias Dewatripont & Luosha Du & Ann Harrison & Patrick Legros, 2022. "Industrial Policy and Competition," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 15, pages 349-380, World Scientific Publishing Co. Pte. Ltd..
    2. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    3. Carl Friedrich Kreuser & Carol Newman, 2018. "Total Factor Productivity in South African Manufacturing Firms," South African Journal of Economics, Economic Society of South Africa, vol. 86(S1), pages 40-78, January.
    4. Chiara Criscuolo & Ralf Martin & Henry G. Overman & John Van Reenen, 2019. "Some Causal Effects of an Industrial Policy," American Economic Review, American Economic Association, vol. 109(1), pages 48-85, January.
    5. Harald Uhlig & Lars Ljungqvist, 2000. "Tax Policy and Aggregate Demand Management under Catching Up with the Joneses," American Economic Review, American Economic Association, vol. 90(3), pages 356-366, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wu, Qingyang & Wang, Yanying, 2022. "How does carbon emission price stimulate enterprises' total factor productivity? Insights from China's emission trading scheme pilots," Energy Economics, Elsevier, vol. 109(C).
    2. Rongwu Zhang & Lan Luo & Jianjun Du, 2023. "The influence of fiscal policy uncertainty on corporate total factor productivity: Evidence from Chinese public companies," Contemporary Economic Policy, Western Economic Association International, vol. 41(3), pages 532-554, July.
    3. Yan, Jiajia & Zhang, Chenyan, 2024. "Financial institution agglomeration and corporate labor allocation efficiency—Based on the context of government debt expansion," Finance Research Letters, Elsevier, vol. 63(C).
    4. Musa Abdu & Adamu Jibir & Salihu Abdullahi & Aisha Adamu Hassan, 2021. "Drivers of manufacturing firms’ productivity: a micro-perspective to industrialization in Nigeria," SN Business & Economics, Springer, vol. 1(2), pages 1-17, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanni Dosi & Andrea Roventini & Emmanuele Russo, 2020. "Public Policies And The Art Of Catching Up," Working Papers hal-03242369, HAL.
    2. Giovanni Dosi & Andrea Roventini & Emanuele Russo, 2021. "Public policies and the art of catching up: matching the historical evidence with a multicountry agent-based model [Catching up, forging ahead, and falling behind]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 1011-1036.
    3. Fantechi, Federico & Fratesi, Ugo, 2024. "Spatial patterns of territorial competitiveness: The role of peripherality, urbanization and physical geography," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Foreign Direct Investment, Information Technology, And Total Factor Productivity Dynamics In Sub‐Saharan Africa," World Affairs, John Wiley & Sons, vol. 186(2), pages 469-506, June.
    5. Dessie Tarko Ambaw & Shandre Mugan Thangavelu, 2022. "Industrial subsidies and impact on exports of trading partners: Case of China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1310-1337, August.
    6. Simplice A. Asongu & Joseph Nnanna & Paul N. Acha-Anyi, 2020. "On the simultaneous openness hypothesis: FDI, trade and TFP dynamics in Sub-Saharan Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-27, December.
    7. Bessonova, Evguenia, 2023. "Firms’ efficiency, exits and government procurement contracts," European Journal of Political Economy, Elsevier, vol. 76(C).
    8. Emilia Landa Shikomba & Elizabeth Elias & Sirorat Ruttanawijit, 2021. "Industry Policy Effects On Namibia'S Economic Growth," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 19(1), pages 13-22, May.
    9. Nathaniel Lane, 2020. "The New Empirics of Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 209-234, June.
    10. Lin, Gan & Takahashi, Yoshifumi & Nomura, Hisako & Yabe, Mitsuyasu, 2022. "Policy incentives, ownership effects, and firm productivity—Evidence from China’s Agricultural Leading Firms Program," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 845-859.
    11. Li, Mingyang & Jin, Man & Kumbhakar, Subal C., 2022. "Do subsidies increase firm productivity? Evidence from Chinese manufacturing enterprises," European Journal of Operational Research, Elsevier, vol. 303(1), pages 388-400.
    12. Asongu, Simplice A. & Odhiambo, Nicholas M., 2020. "Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 44(1).
    13. Liliana Gelabert & Martín Pereyra & Flavia Roldán, 2021. "Public support prevalence and innovation behavior. Uruguay 2007-2015," Documentos de Investigación 127, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    14. Anthony Howell, 2020. "Picking 'winners' in space: Impact of spatial targeting on firm performance in China," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 1025-1046, November.
    15. Simplice A. Asongu & Paul N. Acha-Anyi, 2020. "Enhancing ICT for productivity in sub-Saharan Africa: Thresholds for complementary policies," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 12(7), pages 831-845, November.
    16. repec:spo:wpmain:info:hdl:2441/3s3jn8tt5h9mab7fo128gecbhj is not listed on IDEAS
    17. repec:hal:spmain:info:hdl:2441/3s3jn8tt5h9mab7fo128gecbhj is not listed on IDEAS
    18. Mulier, Klaas & Samarin, Ilia, 2021. "Sector heterogeneity and dynamic effects of innovation subsidies: Evidence from Horizon 2020," Research Policy, Elsevier, vol. 50(10).
    19. Ha-Joon Chang & Antonio Andreoni & Ming Leong Kuan, 2013. "International Industrial Policy Experiences & the Lessons for the UK," Working Papers wp450, Centre for Business Research, University of Cambridge.
    20. Ge, Guoqing & Xue, Jian & Zhang, Qian, 2024. "Industrial policy and governmental venture capital: Evidence from China," Journal of Corporate Finance, Elsevier, vol. 84(C).
    21. Manelici, Isabela & Pantea, Smaranda, 2021. "Industrial policy at work: Evidence from Romania’s income tax break for workers in IT," European Economic Review, Elsevier, vol. 133(C).
    22. Bofinger, Peter & Geißendörfer, Lisa & Haas, Thomas & Mayer, Fabian, 2023. "Credit as an instrument for growth: A monetary explanation of the Chinese growth story," W.E.P. - Würzburg Economic Papers 107, University of Würzburg, Department of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:150:y:2020:i:c:s004016251931073x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.