Does industrial intelligence improve resource misallocation? An empirical test based on China.

Abstract

Resource misallocation has become a new threat to China's high-quality economic development, and industrial intelligence may play an important role in optimizing resource allocation. Using panel data of 30 Chinese provinces from 2010 to 2020, the relationship between industrial intelligence and resource misallocation is studied using the spatial Durbin (SDM) model. To further explore the indirect effect of environmental pollution on resource misallocation, the interaction term between industrial intelligence and environmental pollution is added to test how environmental pollution affects the relationship between industrial intelligence and resource. The research results show that industrial intelligence in China has significant spatial correlation. Local industrial intelligence can improve the local resource allocation, but the intelligence of neighboring industries will intensify the resource misallocation in the region. The interaction between environmental pollution and industrial intelligence also further affects resource allocation, and the interaction term can intensify local capital allocation to improve local labor allocation, and the interaction term in the surrounding area will also improve capital and labor misallocation in the region. Heterogeneous results find that industrial intelligence exacerbates resource misallocation in regions with insufficient capital allocation, and the mediating effect of environmental pollution is not significant. However, in places with excess capital allocation, the development of industrial intelligence helps improve resource misallocation, while the mediating effect of environmental pollution is also present, and industrial intelligence can improve resource misallocation through the indirect effect of improving environmental pollution. Therefore, the policies of local industrial development policies need to fully consider the resource allocation situation in the region. At the same time, it needs to smooth the capital circulation mechanism, reduce the cost of capital allocation, establish a sound employment mechanism, and improve labor misallocation.