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›› 2014, Vol. 37 ›› Issue (2): 372-379.

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Factor flow and productivity growth:an empirical research based on XPCC’s structure-bonus hypotheses

LI  Yu-xin,ZHANG  Zheng-yan   

  1. (College of Economic and Management,Shihezi University, Shihezi 832003, Xinjiang, China)
  • Received:2013-07-10 Revised:2013-09-28 Online:2014-03-25

Abstract: The factor flow is an important influence reason of productivity growth,and the relationship between factor flow and productivity growth can be explained with the “Structural-Bonus Hypothesis ” that internal departments of economy have different productivity levels,elements will flow from low productivity sector to high productivity sector,and the flow of the elements will cause the change of industrial structure which will promote the improvement of the overall productivity,on which many scholars,at home or abroad,have done thorough empirical research,to validate the promoting function of elements flow on productivity growth. Xinjiang Production and Construction Corps (XPCC) as a special organization that bears the responsibility of reclamation and guarding the frontier endowed by the state,has made great contributions to northwest border area stability of China,national unity and the development of regional economy and society. The XPCC is dedicated to the optimization and upgrading of industrial structure and transformation of the pattern of economic development to achieve sustainable development,so under the background this research on promoting effect of factors flow on factor productivity growth has important practical significance. Through the dynamic shift-share method (SSM),this paper has empirically analyzed the impact of flow of labor and capital between industries on productivity growth in the XPCC,to determine whether “structure bonus” phenomenon appears in the transfer process of the labor and capital between industries from 1990 to 2011. The results show as follows:the labor flow from the first industry to second and third industry has promoted the growth of productivity,but the effect is not obvious,so the labor flow between industries has a faint “structure bonus phenomenon”;more capital element has put into the second industry and the third industry which inhibits the growth of the capital productivity,so the capital flow between industries has “structure negative” phenomenon;the productivity growth mainly comes from internal growth effect and elements flow contribution is notable in labor and capital. Why does the flow of labor between the three industry appear “structure bonus phenomenon”,but the transfer of capital between industries appear “structure negative phenomenon”? This is because the fluidity of labor is far stronger than that of capital,labor element has the characteristics of low cost and quick result,the surplus labor in the first industry has freedom choice that can freely flow in labour market to seek better opportunities,which causes transfer of labor force between industries has a weak “structure bonus phenomenon” in the XPCC;the construction of the XPCC organizational structure mainly relies on administrative power and hierarchical level,the division is relatively independently,that is lack of contact which takes the market as the medium in the background of marketization of resources configuration,and the flow of capital elements in cooperation of across divisions,which resultes in liquidity barriers,limits the capital productivity growth and makes the transfer of capital between industries appear “structure negative phenomenon”. The results also show that the free flow of factors playes a crucial role in effect of industrial structure,therefore,to further advance the labor market and capital market,ease restrictions on capital investment,is the important path to promote elements flow to improve factor productivity.

Key words: factor flow, productivity growth, the structural-bonus hypothesis, dynamic shift-share method

CLC Number: 

  • F269.24