The Statistical Measure Of Capital Allocation Efficiency In China

In November 2015,China proposed supply side structural reform,which aims to adjust the economic structure,optimize the allocation of elements,and thus improve the economic quality.In the 19th report,Xi also stressed that adhering to the two principles of 'quality first,efficiency first' and striving to achieve the development goal of 'higher quality,more efficiency,more fairness and more sustainable'.However,the study found that compared with the labor force misallocation,China's capital misallocation is deeper,and the low efficiency of capital allocation is more serious for the loss of economic output.Therefore,it is significant to measure China's capital allocation efficiency accurately and observe the changing trend of allocation efficiency in recent years and discuss its influencing factors for capital allocation optimization.This paper reviews and summarizes relevant domestic and foreign literatures,mainly studies the measurement method of capital allocation efficiency and measures the capital allocation efficiency in China.This paper summarizes the ideas,applicable conditions,advantages and disadvantages of the two measurement methods,and makes some improvements on the equalization of marginal output of capital,and applies the time-varying elastic production function to this measurement method.Firstly,this paper use two methods to measure the overall capital allocation efficiency,and make comparative analysis of empirical results.Secondly,use the Wurgler model to measure the capital allocation efficiency of three regions in China.Then,based on Wurgler model,the panel model was built to measure the capital allocation efficiency of 37 industrial industries in China.Finally,the impact factors of capital allocation efficiency are analyzed.The following basic conclusions are obtained from this study:Firstly,the overall capital allocation efficiency of China from 2005 to 2016 was investigated.Based on the measurement method of capital marginal output equalization,it is found that there are still capital flow barriers in various provinces,and China's capital allocation efficiency tends to be stable during this period.According to Wurgler model,the overall capital allocation efficiency is 0.3658,indicating that China's capital allocation is effective,but it is still at a low level internationally.The trend of measurement results of the above two methods is roughly the same.It is divided into two periods with 2011 as the boundary,and it is found that China's overall capital allocation efficiency has been improved in recent years.Secondly,the capital allocation efficiency of China's three regions is decreasing in the east,the middle and the west.The capital market in the eastern region is relatively developed,and the region has good returns and high potential.Capital is most sensitive to profitability.Thirdly,the capital allocation efficiency of 37 industrial industries in China varies greatly.Some of the industries with low or invalid efficiency are dominated by monopoly industries in China,while the rest are traditional manufacturing industries.The industries with higher level of spontaneous investment are mainly in the industries dominated by state-owned enterprises,and the industries with fierce competition and low technological content have lower level of voluntary investment.Fourthly,it studies the influencing factors of regional capital allocation efficiency,and found that financial development promotes the efficiency of capital allocation in China,especially in the east and west.Government intervention has a significant inhibitory effect on the eastern region and a promoting effect on the central region.The proportion of state-owned economy has a significant inhibitory effect on the eastern region,has no significant effect on the whole country and central regions,and has a promoting effect on the western region.Foreign direct investment has a significant promoting effect on the whole country,eastern and central regions,but has no obvious influence on the west.Fifthly,analyzing the influence factors of industry capital allocation efficiency,found that the proportion of state-owned enterprises and the concentration of the industry have significant inhibiting effect on the efficiency of capital allocation.At present,the impact of technological innovation on the efficiency of industrial capital allocation is not obvious.It may be that the expenditure of the technology industry at the present stage cannot obviously promote the technological progress of the industry,nor can the corresponding output be obtained.