Effects of Land Finance on Resource Misallocation in Chinese Cities during 2003–2017: A Dynamic Panel Econometric Analysis.

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. [ABSTRACT FROM AUTHOR]