An Examination of the Interplay between Total Factor Productivity in Retail Sub-industries in China Mainland
Keywords:Industrial autocorrelation, Retail sub-industry, Spatial econometrics, total factor productivity (TFP)
This research employs a spatial econometrics approach to investigate the interdependencies and dynamics of total factor productivity (TFP) within retail sub-industries in China Mainland by utilizing statistical data from 2013 and 2018. By constructing an adjacency matrix based on industry similarity, the study examines the impact of various factors on the industrial characteristics of retail sub-industries. These factors include total assets and the average number of engaged persons. The findings reveal significant industrial interdependence, variations among sub-industries, and the presence of a distinct retail industry cluster, albeit in a diminishing state. The study also highlights the dominance of capital investment output over labor input and identifies a stage of increasing returns in production inputs. The implications underscore the need to consider mutual influences between neighboring industries when formulating relevant policies.
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Copyright (c) 2023 Xie Ailiang, Fauziah Che Leh, Norimah Rambeli
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