Local Government Behavior,Resource Misallocation And Economic Fluctuationg

China is in a critical period of upgrading and transformation of its industrial structure from low-end to high-end.The government needs to slow down the pace of economic development,guide the upgrading of China’s industrial structure and promote high-quality economic development.In this context,China’s economic development shows the characteristics of "new normal".The speed of economic development is no longer the only indicator to measure the national economy.The high-quality development of the economy is reflected in many aspects,and higher requirements are put forward for economic stability.Therefore,in order to achieve long-term,healthy and sustainable economic development,China’s local governments attach increasing importance to economic stability,the resources misallocation for the local government behavior and the economic fluctuation,all have the close inner link,and between the three was a terrible shortage of related research,explore the inner relation between the behavior of local government,resources misallocation and the economic fluctuation,has a certain practical significance.This paper attempts to analyze the influence mechanism of local government behavior on economic fluctuation from the perspective of resource misallocation.The internal connection among the three was explored from both theoretical and empirical aspects.Firstly,the specific practical connection between the three was sorted out from the theoretical level and the hypothesis was put forward.Secondly,the hypothesis was verified by an empirical perspective.The empirical part of this paper is based on the panel data of 258 cities at prefecture level and above in China from 2007 to 2018.The fixed-effect analysis method is used to investigate the influence mechanism of local government behavior and resource misallocation on economic fluctuations.The mediation model was established to investigate the propagation path of the influence of local government behavior on economic fluctuations,and the resource misallocation was subdivided into the misallocation of capital factors and the misallocation of labor factors to verify the significance of the mediation effect respectively.On this basis,the robustness test was conducted,and finally,the regional heterogeneity of the mediation model was further verified.The results show that,on the whole,both the misallocation of capital factors and the misallocation of labor factors show a stable partial mediating effect,that is,the government behavior can directly affect economic fluctuations or indirectly affect economic fluctuations through the misallocation of resources.Secondly,the impact of resource misallocation on economic fluctuations shows a "U" shape,and excessive resource misallocation will have a huge impact on economic stability.In addition,local government behavior has different effects on the allocation results of different factors of production.Local government behavior can optimize the rational allocation of labor factors,but distorts the allocation results of capital factors.In terms of regions,the mediating effect of resource misallocation shows complete mediating effect and partial mediating effect in the eastern and central regions,respectively,while the mediating effect is not significant in the western regions.Therefore,it is suggested that the government should act as an economic stabilizer and avoid abusing its power to disrupt market competition.The government of the eastern and central regions should pay attention to the radiation effect of local policies on the allocation of resource elements so as to stabilize the economic growth through rational allocation of resources.The western region should strengthen its own attraction to the factors of production in order to alleviate the outflow of factors of production in order to optimize the result of resource allocation.In addition,the misallocation of resources should be viewed scientifically.Moderate misallocation will not pose a threat to economic stability.The government should fully grasp the relationship between the three to improve the quality of regional economic development.