China's factor reallocation effect considering energy.

Decomposing total factor productivity growth rate into internal growth effect that mainly considers industry internal technical advancement and the effect of factor reallocation formed by the flow of capital, labor and energy between sectors, this study took 23 subsectors as the research object and adopted the multi-sector growth accounting method to verify the 'structural dividend hypothesis' of capital, labor and energy from 2005 to 2017. The study drew the following conclusions: (1) Internal growth effect represented by sectoral technical advancement was still the main contributor to total factor productivity growth of the overall economy, but the contribution rate had decreased. (2) The reallocation effect of capital changed from 'structural negative benefit' to 'structural dividend'. (3) The reallocation effect of labor showed a trend of first rising and then falling, changing from 'structural dividend' to 'structural negative benefit'. (4) The effect of energy reallocation was gradually emerging, with a shift from 'negative structural benefit' to 'structural dividend'. Based on these research results, this paper argues that more attention should be paid to the efficiency of factor reallocation in addition to the technical advancement of all sectors. The inefficiency of factor reallocation caused by imperfect market and asymmetric information would partially offset the effect of technical advancement and hinder the high-quality economic development. In view of the reallocation of capital, labor and energy factors, this paper proposes the following suggestions: (1) In the reallocation of capital, consideration should be given to both the macroeconomic regulation and the role of market mechanism, and capital allocation should be carried out in accordance with the principle of profit maximization, so as to improve the elasticity of capital output and increase the allocation efficiency of capital. (2) The reallocation of labor force should not only be limited to the level of three industries; attention should also be paid to the marginal output differences within the secondary industry in this process. (3) Attention should be paid to the elasticity of energy output between sectors to avoid inefficient allocation during energy reallocation. It is also necessary to accelerate the phase-out of industries with high energy consumption and high pollution, promote the development of low energy industries to encourage 'energy conservation and emission reduction' as well as green development by increasing the effect of energy reallocation. [ABSTRACT FROM AUTHOR]