Sponsor(s): Institute of Industrial Economics of CASS
12 issues per year
Current Issue: Issue 12, 2019
Journal official website:http://www.ciejournal.org/
China Industrial Economics is supervised by Chinese Academy of Social Sciences, and sponsored by Institute of Industrial Economics, Chinese Academy of Social Sciences. It aims to report researches on industrial economics and business management, and to reflect outstanding research results on Chinese industrial economy and enterprise development. The scope covers national economy, industrial economy and business management. The journal is included in CSSCI, and is the top journal in the field of industrial economics in China.
Shi Dan, Li Haijian
Pension insurance contribution rate, capital-skill complementarity and enterprise total factor productivity
China Industrial Economics,2019,No. 12
In this paper, employee heterogeneity, capital-skill complementarity and knowledge spillover are incorporated into the overlapping generations model (namely, the OLG model) to obtain the optimal theoretical solution of the enterprise pension insurance contribution rate (PICR). The non-linear relationship between the PICR and the total factor productivity (TFP) is empirically tested by using the micro-data of listed companies, and the optimal value estimation of the enterprise PICR is obtained. Then, a panel double-threshold model is established to analyze the mechanism of TFP affected by employee motivation and capital-skill complementarity. The results show that the relationship between the enterprise PICR and TFP presents an inverted U type. After controlling enterprise characteristics, and the fixed effects of region, time, and industry, the enterprise PICR of 5.67% can help to achieve the maximum TFP. When the enterprise PICR is between 5.20%–9.57%, the enterprise can achieve employee motivation and capital-skill complementarity, so that the investment in high-skilled employees and R&D can jointly promote TFP. Therefore, it is the optimal range of enterprise PICR. Finally, using the quasi-natural experiment that the local governments of China adjusted the enterprise PICR in different directions around 2016, this paper empirically concludes that the optimal PICR in China is between 14% and 18%. At present, there is still room to reduce the PICR, but it must be moderate and we should be vigilant that excessive reduction hinders the improvement of enterprise TFP.
China Industrial Economics,2019,No. 12
De Loecker and Warzynski (DLW, 2012) put forward a new method to estimate firm-level markup, and this method was widely accepted as a concise tool for the estimation and analysis of markup. However, the estimation may be seriously biased due to incomplete consideration of demand heterogeneity. We develop a structural model with richer demand heterogeneity to estimate the firm-level markup and contrast it with the three-step DLW method by means of ten Chinese manufacturing industries in China Industrial Enterprises Database during 1998–2013. There are indeed huge differences between these two methods. In all the ten industries, our estimation distributes more compactly with a smaller variation. The level of estimated markup is far smaller than that of DLW’s estimations. Markup decreases steadily during this period, which means Chinese manufacturing marker is becoming more competitive. Export market is more competitive than domestic market, and firms located in the inland area enjoy higher markup than coastal firms. The results from the DLW method stand sharply against this picture. Further analysis shows that there are distinct outcomes between our method and DLW method in multiple dimensions, such as markup level, dispersion, and dynamic characteristic. This contrast gives obvious evidences that the three-step DLW method’s bias cannot be ignored and it may give misleading answers in many important empirical fields.