Capacity utilization and the measurement of misallocation

Hang, Jing

doi:10.1016/j.econlet.2022.110410

Cited by 5 publications

(6 citation statements)

References 9 publications

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“…Regarding measurement methodologies, scholars have quantified factor misallocation by determining the extent of factor distortion in resource allocation using a profit function [21][22][23] , based on the efficiency loss measurement framework constructed by Hsieh and Klenow in 2009 24 . However, more scholars focus on the relative efficiency loss to reflect transportation resource misallocation 19,25 , such as Bai et al (2021) and Tiwari et al (2023) employed data envelopment analysis to evaluate the efficiency of state-owned transportation sectors in China's railroads and India's roads 26,27 ; Li et al ( 2022) assessed the overall efficiency of China's transportation industry using PVAR Models 19 .…”

Section: Literature Reviewmentioning

confidence: 99%

Research on infrastructure scale structure misallocation under economic and low-carbon perspectives: evidence from China's toll expressway industry

Bai,

2024

Preprint

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Improving resource allocation efficiency is an important way to promote the high-quality and low-carbon development of toll expressways. This paper constructs a resource misallocation measurement model with the demand of the economic, low-carbon and comprehensive of toll expressway construction in each region, and adopts the panel data of 26 provinces from 2013 to 2021 to measure the scale allocation gap of toll expressways under different demands, and analyzes the inter-regional and supply-demand imbalance. The results show that: the current network layout of toll expressways lacks sufficient balance, manifesting in varying degrees of mileage and capital allocation across different regions; Resource allocation of toll expressways tends to outflow from over-resourced regions with high connectivity, while simultaneously inflow to under-resourced, low connectivity areas; Regions have commenced positioning the enhancement of environmental protection capabilities of toll expressways and the expansion of their economic benefits at an equivalent strategic echelon; The national policy plays a significant role in enhancing the overall efficiency of expressway resource allocation. The conclusions of this study provide policy insights for the optimization of resource allocation in China's toll expressways, particularly in terms of driving high-quality development and narrowing the gap between supply and demand.

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Section: Literature Reviewmentioning

confidence: 99%

Research on infrastructure scale structure misallocation under economic and low-carbon perspectives: evidence from China's toll expressway industry

Bai,

2024

Preprint

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“…Solow [4] Assess the scope of input misallocation in Italy and its impact on aggregate output and TFP.…”

Section: Research Directionmentioning

confidence: 99%

“…Its current and past situation can be used as a reference to extrapolate results to other developing countries. There are serious RM problems among regions, industries, and companies in China that Buildings 2022, 12, 1731 2 of 19 significantly reduce its productivity [4]. These largely explain the difference in productivity between China and other more developed countries [5].…”

Section: Introductionmentioning

confidence: 99%

Current and Future Trends of Resource Misallocation in the Construction Industry: A Bibliometric Review with Grounded Theory

Zhang

Dong²,

Ballesteros‐Pérez³

et al. 2022

Buildings

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Resource misallocation (RM) refers to the existence of marginal output inequalities between different industries or companies in an economy. Prior studies of RM have mostly focused on effect analysis, construction industry structure upgrades, and organization management. However, these studies have been fragmented and unrelated. This paper analyzes the status quo, consequences, and emerging trends of RM research at the macroscopic level based on current problems and with the aim of exploring potential solutions. Drawing on grounded theory, a qualitative analysis using text-mining is used to analyze the characteristics of 124 RM-related papers. The results more comprehensively and systematically reveal that current RM research encompasses four major dimensions of sources and concepts, misallocation degree measurement and characterization, focused issues (field), and RM research deficiencies. Methods for measuring RM have also been developed from the simple proportional method to current mainstream methods (e.g., growth rate decomposition and variant substitution). We conclude that, in order for this discipline to thrive and effectively reduce RM, future research into RM should focus on core categories, especially the reform of market-oriented factors, transformation of government functions, construction industrial structure adjustment, and methods of income distribution. This systematic review provides a discipline oversight and uncovers necessary and potential research directions.

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“…Thirdly, we take land into account as the third production factor except capital and labor in the research of resource misallocation. Most studies are known to take only capital and labor into account as production factors [ 9 , 17 , 18 ]. But we consider land as a significant production factor in China as well.…”

Section: Introductionmentioning

confidence: 99%

Factor price distortion among regions in China and its influence on China’s economic growth

Yang

2023

PLoS ONE

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Factor price distortions and resource misallocation are important sources of productivity differences between regions. Promoting the free flow of factors of production is conducive to giving full play to the decisive role of the market in allocating resources, which is crucial to helping a country’s economy develop in a high-quality and sustainable manner. This paper proposes a new approach to measuring factor market distortions and establishes the relationship between factor price distortions and a country’s economic growth. This paper examines the resource misallocation and efficiency loss of 31 provinces in China from 2004 to 2020, and proposes an analytical framework for resource misallocation among regions, with which the Total Factor Productivity (TFP) and the factor price distortion of provinces in China are calculated. The calculation results indicate that the TFP of China’s provinces gradually declines from the eastern coast to the western inland. The resource allocation efficiency in the eastern and central areas is higher than that in the western areas, so is the factor price, and its distortion causes nearly 6% of loss of output value in China. China’s economic growth is still reliant on the increase of factor input and technological development and the improvement of resource allocation efficiency has no significant effect on growth.

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Capacity utilization and the measurement of misallocation

Cited by 5 publications

References 9 publications

Research on infrastructure scale structure misallocation under economic and low-carbon perspectives: evidence from China's toll expressway industry

Research on infrastructure scale structure misallocation under economic and low-carbon perspectives: evidence from China's toll expressway industry

Current and Future Trends of Resource Misallocation in the Construction Industry: A Bibliometric Review with Grounded Theory

Factor price distortion among regions in China and its influence on China’s economic growth

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