Study on the Effect of Factor Efficiency on Economic Restructuring Under Supply—Side Driving

The structural reform of supply side is an important measure to change the mode of economic growth and promote the adaptive reform under the new normal. Based on the provincial panel data of China from 1998 to 2015, this paper estimates the total economic restructuring scores, total factor productivity and LMDI decomposition intensity of each province and city. On this basis, the empirical test model of factor efficiency on economic restructuring is constructed. The results show that the efficiency of capital, labor and technical factors has significant effect on economic restructuring, but the effect of technical factors on economic restructuring is not obvious. Besides, the influence of capital and labor factors on economic restructuring is gradually weakening. Paying attention to the change of quantity and quality of capital and labor factors and persisting in technology accumulation will have important influence on economic restructuring. Moreover, compared with demand management, supply management can promote economic restructuring more effectively. Finally, the policy recommendations are put forward.