A Study On The Impact Of Factor Allocation Distortion On Economic Growth In China’s Prefecture-level Cities

Continuously improving the level of market-oriented allocation of factors is an inherent requirement for building a unified,open,and orderly competitive socialist market economic system,and it is also a key link in improving the socialist market economic system in the context of the new era.On April 9,2020,the Central Committee of the Communist Party of China and the State Council issued the "Opinions on Building a More Complete System and Mechanism for Market-based Allocation of Factors".This is the first important document of the Party Central Committee and the State Council focusing on the market-oriented reform of factors.It is of great significance for the rational flow of production factors,improving the quality and efficiency of the current factor allocation,and guiding the agglomeration of various production factors to advanced fields and high-end industries.significance.Therefore,this paper focuses on the main line of the impact path and promotion strategy of factor allocation distortion on economic growth,and follows the research ideas of theoretical analysis-mechanism analysis-empirical research-policy recommendations,using literature research methods,statistical analysis methods,mathematical analysis methods and empirical research methods.The research method starts with exploring the ways and influencing factors of factor allocation distortion on economic growth loss,investigates the possible local effects and spatial effects of economic growth loss,and draws on the research paradigm of HK model to explore the microscopic effect of factor allocation distortion on economic growth loss.Mechanism,explore the impact path of industrial structure,total factor productivity and employment structure,and find the path and policy for long-term economic growth of China’s prefecture-level cities.The research content mainly includes the following four aspects: First,by measuring the current situation of the distortion of factor allocation in prefecture-level cities,it analyzes the numerical changes of the current factor allocation.This paper explores the current reality of the distortion of factor allocation in prefecture-level cities,and compares the time changes of capital mismatch and labor mismatch,as well as the spatial changes of factor distortion allocation in different years.time inertia" and "peer effect".The second is to analyze the realistic path of industrial structure,total factor productivity and employment structure in the impact of factor distortion allocation on economic growth loss.Drawing on the analysis paradigm of the HK model,the concept of economic growth loss is defined,and the economic growth loss is defined by changing the model.The growth loss is included in the traditional HK model analysis,which sorts out the micro-mechanism of factor allocation distortion on economic growth loss,and expands the research connotation of the HK model.Thirdly,by using high-dimensional fixed effect model,differential GMM model,system GMM model,spatial econometric model and threshold effect model,empirically analyze the direct impact of factor allocation distortion on economic growth loss,the "time inertia" and the existence of economic growth loss."The Cohort Effect".The fourth is to put forward policy suggestions to alleviate the distortion of factor allocation based on the empirical results.Continuously promote the market-oriented reform of factors and remove the institutional and institutional obstacles to the free flow of factors.We should also make full use of the "inertia" of economic growth and effectively overcome the "community effect" in the process of economic growth.We should also pay attention to industrial structure,The mediating effect of total factor productivity and employment structure in resource mismatch and economic growth gap.The research conclusions are as follows: First,the capital allocation efficiency of prefecture-level cities has been further improved,while the gap in the distorted allocation of labor has continued to widen,and the characteristics of population agglomeration have become increasingly prominent.The economic growth gap in the first two periods has an economic growth "inertia" to the current economic growth gap,and such "inertia" generally lasts for two periods,while the third period will fail..Third,the mitigation of factor mismatch will be accompanied by the clearing of sunk costs of capital and labor,so that the industrial structure and employment structure can be optimized under the principle of market pricing,and then the economic growth gap can be reduced,but in the process of path analysis,the regression results with total factor productivity(TFP)as the mediating variable show insignificant characteristics in statistics,which can be considered to be caused by the characteristics of capital bias in my country’s current technological progress.The innovations of this paper are as follows: First,it verifies the existence of "time inertia" and "cohort effect" in the economic growth loss of prefecture-level cities through analysis and empirical methods,and proposes the existence time limit of "time inertia".The second is to expand the research connotation of the HK model and incorporate the loss of economic growth into the analysis paradigm of the HK model.Through the analysis of the mathematical model,the direct impact of factor distortion allocation on the loss of economic growth is verified.The third is to explore the path impact of factor distortion configuration on economic growth loss,which provides new empirical evidence for path analysis.