A Re-Study Of The Misallocation Between Capital And Labor Resource In China

Since the reform and opening up,China’s economy has basically maintained a high-speed growth trend,including 15 years of growth rate exceeding double digits.However,since 2015,China’s economy has been characterized by the so-called "new normal",and the rate of GDP growth has been below 7% for three consecutive years.In addition to the negative impact of the external economic environment and the demographic and institutional reform dividends,there is a very important reason for us to actively adjust the economic structure.To adjust the economic structure,resources must be properly configured.On the other hand,the growth rate of GDP is no longer the only goal of China’s economic development.We are more concerned about the issue of equity in economic development than before,especially the issue of fairness in the coordinated development between the East,Central and West regions.In view of the first phenomenon,from the perspective of economic efficiency,we should allocate resources through efficient market mechanisms,thereby improving resource allocation efficiency and eliminating resource misallocation,so that the Chinese economy can gain new development momentum.However,in view of the second phenomenon,from the perspective of fair development,the government needs to continue to adopt a biased policy of tolerating a certain degree of resource misallocation to support the development of the central and western regions,thereby achieving regional coordinated development,promoting social stability and ethnic Unity.However,in traditional economic theory,there is a certain contradiction between fairness and efficiency,that is,one-sided improvement of one party will inhibit the improvement of the other.At the same time,from the perspective of fairness and efficiency research resource region misallocation,do we have the same impact on the development of China’s regional economy? How to deal with the same impact? Therefore,it is of great practical significance to study China’s resource regional misallocation and its impact on regional economic development from the perspective of fairness and efficiency.In addition,by searching the literature,we findthat it is rare to evaluate the impact of government intervention on resource misallocation and the impact of resource misallocation on regional economic development from the perspective of efficiency and fairness.Therefore,the research in this paper can be certain.The degree is complementary to the research on resource misallocation and has certain theoretical significance.This paper draws on the relevant data and theoretical models in previous studies,and calculates the resource misallocation indices of various provinces in China from2000 to 2016.The results of the calculations show that:(1)the degree of capital misallocation in the eastern region is significantly lower than that in the labor misallocation,but both are inadequately allocated;(2)the degree of capital misallocation in the central and western regions is significantly lower than that in the labor misallocation,and both are Over configured.In addition,the degree of capital misallocation in the eastern,central and western regions has a tendency to increase over time,and the degree of labor misallocation has a tendency to decrease over time.Subsequently,the appropriate control variables were added to construct the static panel data model and the dynamic panel data model of the government intervention and resource misallocation index.The static panel model was used for individual fixed effects and the dynamic panel model was empirically analyzed using the system GMM.The empirical results show that(1)The higher the degree of government intervention,the higher the degree of capital and labor;(2)Through the dynamic panel data model,it can be found that the past resource misallocation will greatly deepen the current resource misallocation,that is,resource misallocation.There is a path dependency.Finally,empirical analysis is carried out on the relationship between capital and labor misallocation and regional economic development from the two levels of the whole and sub-regions.The empirical results show that:(1)capital and labor misallocation will have a negative impact on China’s overall economic development;2)The misallocation of capital has a positive impact on the economic development of the western region.These empirical results show that there is a certain degree of government-market conflict in China,that is,there is a conflict between economic efficiency and fair development.Based on the theoretical and empirical analysis results,this paper proposes relevant policy recommendations.Under the premise of maintaining regional coordinated development,it is believed that reasonable government intervention,sound market mechanism,coordinated regional policies,and new household registration system can eliminate Many obstacles in the free flow of resources further improve the efficiency of resource allocation,thereby reducing or even eliminating resource misallocation.At the same time,these countermeasures can also promote coordinated development between regions,taking into account efficiency and fairness to a certain extent.However,due to the imperfection of data and the limited research level,this paper has some shortcomings:(1)Due to the change of statistical caliber,this paper only selects the proportion of state-owned industrial enterprises after industrial production in 2000,and from 1993,from 1993.At the beginning of the year,there are statistics on the fixed asset investment price index used to calculate the elasticity of capital output.(2)When doing the dynamic panel data model,only the first-order lag of the explained variable is considered,and the second-order or higher-order is not considered,and the degree of capital or labor misallocation affecting the current period may be more than the past one.