Abstract

Taking the high-quality development of financial services manufacturing as the entry point, based on the real background of financial resource allocation among industries and different types of enterprises in the Chinese manufacturing industry, this paper constructs an analytical framework for financial resource allocation distortion leading to total factor productivity loss, measuring the efficiency of financial resource allocation in Chinese manufacturing industry and the total factor productivity loss caused by distortion. The study finds that: (1) The efficiency of financial resource allocation among manufacturing industries is relatively high, while the efficiency of financial resource allocation within industries is relatively low. In intra-industry allocation, debt allocation efficiency and financing scale allocation efficiency are relatively low. (2) During the sample period, the total factor productivity loss caused by overall financial resource allocation distortion in the manufacturing industry averaged 37.30% annually, among which, the average annual productivity losses caused by intra-industry and inter-industry allocation distortion were 31.54% and 5.76%, respectively. Within intra-industry allocation distortion, debt allocation distortion and financing scale allocation distortion are the main sources. The productivity loss caused by ownership discrimination in financial resource allocation is greater than that caused by scale discrimination, and the productivity loss caused by distortion in non-state-owned and small-scale enterprises is greater. The total factor productivity losses caused by various types of financial resource allocation distortion have significantly decreased after the supply-side structural reform. (3) The good distortion formed by early financial support policies for key industries is different from the bad distortion of traditional non-key industries. With the development of key industries, the good distortion will be alleviated, and the total factor productivity loss will also decrease accordingly. The law of the effect of good distortion on total factor productivity has important enlightening significance for the current financial support strategy for strategic emerging industries and the cultivation of future industrial new quality productivity.

Keywords: Financial Resource Allocation, Total Factor Productivity, High-quality Development of Manufacturing Industry, Cultivation of New Quality Productivity.