The Influence of Government-Led Industrial Agglomeration on the Efficiency of Resource Allocation—Evidence from 30 Provinces in China over 2000-2017
- 1 School of Economics, Wuhan University of Technology, Wuhan, China
- 2 School of Economics, Wuhan University of Technology, Wuhan, China
Abstract
Under the development mode of government-led industrial agglomeration, most enterprises are motivated by the purpose of obtaining “policy rent”, which has a negative impact on the improvement of resource allocation efficiency. Therefore, based on Hsieh & Klenow’s resource mismatch theory, this paper measures the resource mismatch index of 30 provinces and empirically tests the impact of government-led industrial agglomeration on resource allocation efficiency. The results show that the tendency of “free-ride” caused by government intervention leads to the U-shaped change trend of industrial agglomeration on resource allocation efficiency. This paper discusses the feasible options to improve the efficiency of resource allocation under the joint action of market mechanism and moderate government intervention.
- Bai, C., Du, Y. J., Tao, Z. G., & Tong, Y. T. (2004). Determinants and Trends of Local Protectionism and Regional Concentration of Industries. Economic Research, 4, 29-40.
- Bai, J. H., & Liu, Y. Y. (2018). Can Foreign Direct Investment Improve China’s Resource Mismatch. China Industrial Economy, 1, 60-78.
- Cao, Y. S., & Lou, D. W. (2012). Resource Mismatch, Structural Change and Economic Transformation in China. China Industrial Economy, 10, 5-18.
- Hsieh, C., & Klenow, P. (2009). Misallocation and Manufacturing TFP in China and India. Quarterly Journal of Economics, 124, 1403-1448. https://doi.org/10.1162/qjec.2009.124.4.1403
- Ji, S. H., Zhu, Y. M., & Zhang, X. (2016). Research on the Improvement Effect of Industrial Agglomeration on Resource Mismatch. China Industrial Economy, 6, 73-90.
- Krugman, P. (1991). Increasing Returns and Economic Geography. The Journal of Political Economy, 99, 483-499. https://doi.org/10.1086/261763
- Li, X. L. (2014). An Empirical Analysis of Marketization, Industrial Agglomeration and Environmental Pollution. Statistical Research, 31, 39-45.
- Liu, R. M. (2012). State-Owned Enterprises, Implicit Subsidies and Market Segmentation: Theoretical and Empirical Evidence. Management World, 4, 21-32.
- Liu, R. M., & Zhao, R. J. (2015). Do National High-Tech Zones Promote Regional Economic Development?—A Validation Based on Double Difference Method. Management World, 8, 30-38.
- Markusen, A. (1996). Sticky Places in Slippery Space: A Typology of Industrial Districts. Economic Geography, 72, 293-313.
- Marshall, A. (1890). The Principles of Economics. London: Macmillan.
- Shi, B., & Shen, K. R. (2013). Government Intervention, Economic Agglomeration and Energy Efficiency. Management World, No. 10, 6-18+187.
- Wang, L. H., & Yuan, L. (2014). Does Capital Mismatch Induce Total Factor Productivity Loss. Statistical Research, 31, 11-18.
- Xiao, X. Z., & Li, S. S. (2018). The Corrective Effect of Industrial Agglomeration on Manufacturing Resource Mismatch: Linear or Nonlinear? Industrial Economics Research, 5, 1-13.
- Yuan, Z. G., & Xie, D. D. (2011). Analysis of the Impact of Labor Force Mismatch on TFP in China. Economic Research, 46, 4-17.
- Zhang, J., Wu, G. Y., & Zhang, J. P. (2004). Estimation of Interprovincial Physical Capital Stock in China: 1952-2000. Economic Research, 10, 35-44.