The Capital Misallocation's Productivity Loss Effect

In accordance with the law of diminishing marginal returns to the microeconomy,capital should move from the rich to the poor,but the reality of empirical evidence reflects the "Lucas paradox".The capital in the Midwest is in a large loss,the eastern region tremendously assemble.So to some extent,the capital there is a certain degree of misallcation.Based on this,this paper takes China's electronic information industry as the research object,to analyze the effect of capital mismatch on productivity,and promote better,faster and more sustainable development of Chinese electronic information industry.This paper starts from the literature review,and summarizes the evolution of research resources misallcation to capital misallcation and recent research results.These research constitute a systematic theoretical basis from the micro to the macro.But these studies pay more attention to the results,ignoring the process of capital misallcation,and calculate the capital misallcation under the static.the source of capital misallcation is given directly that is the established existence.Thus,it restricts its interpretation of the real economy.In view of this,thispaper improve that in three aspects: trying to endogenous process of capital misallcation,estimating the dynamic capital misallcation,narrowing the industry category,and taking into account regional differences.The third chapter discuss the formation of capital misallcation from the theoretical point of view.On this basis,a simple mathematical model is constructed to illustrate the mechanism of capital misallcation affecting productivity.Due to the existence of various subjective and objective factors,the capital market allocation is often inefficient,and its most essential performance is the inconsistent marginal output.The problem of capital misallcation not only causes distortions in the allocation within the industry,but also causes macroeconomic imbalances.In the short run,the change is output;in the long run,the change is the combination of technology and factor endowment,and finally the macroeconomic efficiency changes.Based on the those analysis framework,an analysis framework of capital misallcation---productivity growth is constructed.Under this framework,from the factor markets itself to discuss to examine the effect of capital misallcation on productivity.Chapter IV and Chapter V is based on the above analysis framework to carry out detailed and empirical analysis on the electronic information industry.It is mainly discussed the capital misallcation of the electronic information industry in Chapter IV and the capital misallcation's effect on total factor productivity in Chapter V.We mainly get the following conclusions:The capital misallcation in the electronic information industry is serious,but has improved in recent years.The capital misallcation is the main factor in comparison with labor mismatch,both of which constrain productivity gains.While reducing a unit of capital misallcation can improve the total factor productivity 0.55279.So there is still room for correction of capital misallcation.If the capital allocation is effective,the total factor productivity of the electronic information industry can be increased by about 50%.At the same time,government intervention not only increases the capital misallcation but also promotes the productivity development,this may be the new discovery.At the end of this paper,some superficial suggestions are put forward:The market play the decisive role in allocating resources and ensure that the government plays a better role,to correct the capital misallcation,enhance the efficiency allocation,and take the connotative development path.