Abstract
Based on the review of previous studies and the analysis of the dynamic changes of misallocation of capital and labour in China during 2003–2017, this study has adopted the Dynamic Panel Econometric Model to investigate the effects of land finance on resource misallocation at national, regional, and urban tier levels. The results show that resource misallocation has a significant feature of temporal dependence, while the misallocations of capital and labour in China have experienced different dynamic changes during the investigation period. In addition, land finance has aggravated resource misallocation at the national level, while spatial heterogeneity is established at regional and urban tier levels, which deserves much more attention in further studies. The conclusions will not only provide a relatively scientific and accurate reference for the effective allocation of production factors but also be conducive to the coordinated and sustainable development of China’s economy in the long run.
Highlights
Since the reform and opening up in 1978, China’s marketization has improved significantly, while there still exists the mechanism barrier of resource misallocation so far [1]
Based on the review of previous studies and the analysis of the dynamic changes of resource misallocation in China during 2003–2017, this study has adopted the Dynamic Panel Econometric Model to investigate the effects of land finance on resource misallocation at national, regional, and urban tier levels. e main conclusions of this study are as follows
The first-phase lag of resource misallocation has significantly aggravated the current period of resource misallocation at national, regional, and urban tier levels, which provides a robust evidence for the existence of temporal dependence for resource misallocation in China
Summary
Since the reform and opening up in 1978, China’s marketization has improved significantly, while there still exists the mechanism barrier of resource misallocation so far [1]. Compared with the existing literature, this study has four contributions, which may shed light on further studies Different from the former researches by using provincial-level data, this study has locked the research objects into the city-level data, which can better reveal the effects of land finance on resource misallocation in China. Irdly, this study has adopted the Dynamic Panel Econometric Model to explore the effects of land finance on misallocation of capital and labour in China, which will help to reveal the consequence of land finance and the temporal dependence of resource misallocation and enrich the theories of coordinated and sustainable development. This study has comprehensively investigated the effects of land finance on resource misallocation at national, regional, and urban tier levels, which can provide inspiration for scientific and accurate policymaking, and it is one of the practical contributions to promote effective allocation of production factors. To exhibit the studying steps of the work progress intuitively, this study has adopted a flowchart diagram in a graphical way (Figure 1)
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