The Empirical Study of House-price Fluctuations on the Impact of Total Factor Productivity of Manufacturing in China-Based on the Perspective of Misallocation of Resources

The paper establishes theoretical and empirical model that measured and analyzed the impact of distortions of factor price, caused by irrational prosperity of China's real estate, on misallocation of capital, labor and distortion of overall TFP in manufacturing enterprises during the periods of 2007 to 2016. The main conclusions obtained are at followings: 1) Manufacturing enterprises had significant and varying degree of distortions of capital, labor and overall TFP on three levels of national overall, different regions and ownership systems; 2) Rising real estate prices could obviously cause misallocation of resources and reduce the growth rate of TFP in manufacturing; 3) If the misallocation of resources were eliminated, the TFP would receive a highly increase of 20%-30%. The degree of influence of the virtual economy on the real economy is exactly what China and the countries with related problems need to study in depth. This study will make up the gaps in this research.