Technological Progress,Anti-Baumol's Cost Disease and Manufacturing Share
In the face of China's manufacturing share a rapid decline since 2006,the"14th Five-Year Plan"clearly put forward to maintain the stability of the share of manufacturing industry,while building a modernized industrial system must accelerate the implementation of the innovation-driven development strategy,to achieve a high level of scientific and technological self-reliance and self-improvement.To this end,to maintain the stability of the share of manufacturing,and innovation-driven together must be adhered to at the same time.However,according to Baumol's theory of unbalanced growth,technological progress will lead to an increase in the share of the service industry and a decrease in the proportion of the manufacturing industry,which makes China's adherence to the innovation drive and maintaining the stability of the share of the manufacturing industry face a theoretical paradox.For this reason,this paper,based on the real needs in China's socialist modernization,tries to provide explanations and empirical verification for breaking the theoretical paradox of technological progress and maintaining the stability of the share of manufacturing industry at the same time.This paper compared the conditions of Baumol cost disease,based on the fact that the total factor productivity growth rate of the service industry has been higher than the total factor productivity growth rate of the manufacturing industry,and pointed out that there is an anti-Baumol cost disease phenomenon in China,that is,there is a Baumol cost disease in the field of manufacturing.We revised the Baumol theoretical model and found the root cause of the decline in the share of manufacturing industry in China from the perspective of technological progress.We conclude that only by accelerating the technical progress of the manufacturing industry and technological transformation to improve the total factor productivity of the manufacturing industry can realize the share of the manufacturing industry unchanged.This puts forward a logically consistent theoretical explanation for the simultaneous realization of innovation-driven development and maintaining stability of the share of manufacturing industry.The paper's empirical study using data from 17 manufacturing industries in the WIOD database from 2000-2014 finds that higher TFP growth rates can significantly increase the manufacturing share.Controlling for the effects of other variables,every 1％increase in manufacturing TFP growth rate will increase the manufacturing share by 1.7％before 2011,and 0.56％higher after 2011 than before.Heterogeneity analysis of high-tech manufacturing and low-tech manufacturing further supports this conclusion.One percent increase in the TFP growth rate of high-tech manufacturing would increase the share of manufacturing by 2.3 percent,while an increase in the TFP growth rate of low-tech manufacturing would lead to only 1.35 percent increase.The mechanism that affects the change in the share of manufacturing is that an increase in the level of TFP will improve the international competitiveness of manufacturing,and is empirically tested based on the relative comparative advantage of value added(RCA_VAX).
technological progesstotal factor productivityBaumol's cost diseaseanti-Baumol's cost diseaseshare of manufacturing industry
万方数据
维普
