The Influence Of Urban Scale To The Enterprise Resource Misallocation

Optimizing production resources allocation is an important path to improve enterprises' supply efficiency,and raise the quality of country's supply system.As important sites for economic elements accumulation,cities play more and more important roles in the development of national economy.With the rapid development of urbanization and the implement of the supply side reform in China,there are some problems in industry development,such as regional industrial structure adjustment,industrial transfer and industrial distribution,demanding prompt solution.Therefore,it has an important theoretical and practical significance to understand the relationship between urbanization and the production resource allocation in China.Based on related researches,such as the city scale efficiency theory,industrial agglomeration theory and resource allocation theory,this paper investigates the impact of city scale on the resource misallocation in Chinese industrial enterprise.In the theoretical analysis sections,this paper discuss the factors for the resource misallocation between enterprises within production department.Resource's mobility and marketization is beneficial to reducing the mismatch of resource between enterprises.Nevertheless,the bias policy caused by government's administrative intervention will form an unfair competition environment for the enterprise,which will lead to a result of misallocation of resource.Therefore,early urban scale expansion improves the free flow of production factors,and optimizes the arrangement of resources in geographic space and production department.But if the cities are excessive expansion,the net effect of city expansion to improve efficiency of resources allocation reduces gradually,showing a nonlinear characteristics of the relationship between urban scale and resource allocation.In the empirical analysis sections,based on Chinese industrial enterprise data and city data from 2001 to 2007,we estimated the mismatch degree of resources for every sample,and then study the causal relationship between urban scale and the enterprise resource misallocation.The results confirmed a nonlinear relationship between the urban scale and the manufacturing enterprise's resource misallocation.Further,we use a mediation effect estimates method to test the channels for the urban scale affecting the enterprise resource allocation efficiency.Intermediary effect estimation results show that the city expansion will add the industrial diversification and improve the transportation infrastructure construction,which can effectively reduce resource misallocation.And the excessive intervention behavior for government in the process of urbanization will worsen the efficiency of resource allocation.Therefore,this paper argues that,compared with the path of urbanization that focus on constructing big cities as growth pole to promote economic growth,seeking a more balanced regional growth pattern is more advantageous to reallocate production resources and raise the level of social overall productivity.In the process of economic transition in China,rather than excessive intervention in the resource allocation,the government should institute decentralization and encourage competition to guide the market to dominate the allocation of resources,and build a more liberalized production factor market.