Abstract

Based on the data of listed manufacturing firms in China, this article calculates the TFP of listed manufacturing firms in 31 provinces, municipalities and autonomous regions in China from 2000 to 2020, and makes a comparative analysis of the unbalanced development of manufacturing industry in all these provinces, municipalities and autonomous regions. The DOP productivity decomposition model is used to decompose the influencing factors of the TFP in manufacturing sector, and the magnitude of impacts of each influencing factor on TFP is studied. The research results demonstrate that the TFP of listed manufacturing firms in 31 provinces, municipalities and autonomous regions in China shows a fluctuating upward trend on the whole, and regional gap in TFP is narrowing. The results of structural decomposition based on the DOP decomposition model shows that the firm growth effect contributes the most to the TFP growth in Chinas listed manufacturing firms while net entry effect makes a negative contribution. In terms of firm growth effect, the growth of firms themselves makes larger contribution to the enhancement in TFP than the improvement in resource allocation efficiency, and the within effect is positive, indicating that market resource allocation is in the favorable direction. However, the net entry effect of firms have a negative contribution to the TFP of listed manufacturing firms. It can be seen that listing and delisting of firms have a negative impact on the TFP of listed manufacturing firms. Based on the decomposition of TFP of listed manufacturing firms in different regions, it is observed that the net entry effect is positive in the northeastern and western regions, while it is negative in the eastern and central regions. This indicates that the factors influencing the enhancement in TFP vary in the impact directions across different regions. Enhancing TFP is crucial for achieving high-quality development. This article analyzes the sources of improvement in TFP from the perspective of listed manufacturing firms, which can guide efficient firm development, promote regulatory compliance in the manufacturing market, lay a solid foundation for the transformation and upgrading of Chinas manufacturing industry, and inject a continuous stream of vitality into the countrys economic development.