Capital and labour distortion in China: a systematic literature review using HistCite

Abstract

This paper shows a systematic literature review using HistCiteTM in the context of factor market misallocation in China. Four key research streams are identified: government intervention; misallocation explanation; market distortion and regional factor distortion. Further, the paper identifies three emerging research streams: endogeneity; legislation relating to factors of production; and knowledge management. Factor markets misallocation has been a lasting problem since the market‐oriented reform implemented by the Chinese Government. The academic literature review mainly focuses on the misallocation under Chinese national situation.