The Effect of Industrial Synergistic Division on Total Factor Energy Efficiency: Evidence from the Industrial Chain

Abstract

The orderly synergistic division among upstream and downstream entities in the industrial chain is a significant reflection of the industrial chain structure optimization and a key method for enhancing production efficiency. Utilizing the non-competitive input-output tables of China from 2002 to 2020, this paper employed structural path analysis to construct an industrial synergistic division (ISD) index, and explored the impact of ISD on the total factor energy efficiency (TFEE) of the industrial chain using econometric models. The study found that: (1) With the continuous deepening of production division, the proportion of high-layer industrial chains has steadily increased, involving more sectors in the production division, thereby enhancing the ISD capability. (2) The enhancement of ISD capabilities can significantly improve the TFEE. The results remain robust after a series of endogeneity tests. (3) The positive effect of ISD on TFEE is more pronounced in high- layer and non-high-energy-consuming industrial chains. Additionally, the digital and intelligent transformation plays a positive moderating role in this impact. The conclusions of this study offer significant policy implications for countries formulating strategies to optimize industrial chain structures and enhance energy utilization efficiency.

JEL Classification: F12, Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

Keywords

industrial chain industrial synergistic division total factor energy efficiency structural path analysis

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