A Research On The Measurement And Determination Of Regional Resource Misallocation

In recent years,China's economy develops into 'the new normal pattern.The driving force of the economic growth has been changed.China not only pursuits economic growth,but also focuses on the quality of economic development.Eliminating the misallocation has become an important way to improve the efficiency of China's economy.The paper analyzes the degree of China's misallocation,the difference between regions,and the facts that determine the misallocation.Firstly,this paper uses the model of Hsieh and Klenow(2009)to measure the misallocation of China's prefecture-level cities,and compares the difference between regions.Besides,the thesis analyzes the tendency of regional misallocation,and compares the feature of different regions.The empirical results show that,the total misallocation in China presents a long-term downward trend,and the efficiency of resource allocation has been increased by 4%in the past eight years.Financial misallocation in China shows a downtrend,while labor misallocation displays a rising trend.In addition,there is an obvious regional difference in China's misallocation,cities with higher misallocation are mainly concentrated in central and western regions,such as Shanxi,Henan and Gansu,and the level of misallocation in the central and western region is higher than that of the eastern regions.Using the data calculated,the paper builds an econometric models on the basis of Han jian,Zheng qiulin(2014)to investigate the influence of market development,government intervention,degree of market opening and industrial structure on misallocation.By employing the methods of GMM,the thesis derives that the development of factor markets,trade liberalization and the upgrading of industrial structure reduce the level of misallocation significantly.Government intervention has a positive correlation with misallocation.The effect of all determinants on misallocation varies between coastal and inland areas.Based on the analysis,several suggestions are made to improve the misallocation in China,including the construction of finance market,quality of labor,elimination of administrative barriers,and the quality of export commodities.