Research On The Impact Of Digital Economy On Capital Factor Market Distortion

Improving the efficiency of resource allocation and easing the distortion of capital factor market is an important way to promote the high-quality development of the economy.The report of the 20th National Congress of the Communist Party of China emphasized that we should build a high-level socialist market economic system and give full play to the decisive role of the market in resource allocation.The rise of the digital economy has injected new impetus into economic development,and also provided new ideas for alleviating the distortion of the capital factor market.Exploring the influence effect and transmission mechanism of the digital economy on the distortion of the capital factor market can provide theoretical basis and policy reference for promoting the development of the digital economy and the digital transformation,and is of great significance for improving the efficiency of resource allocation and promoting the market-oriented reform of factors.Based on the data of 30 provincial administrative regions(excluding Tibet)in China from 2011 to 2020,an indicator system is built to measure the development level of digital economy in China’s provinces.The C-D production function method and the least squares dummy variable method(LSDV)are used to calculate the distortion level of capital factor market in each province.The paper uses the panel fixed effect model(FE)and the static spatial Dubin model to explore the static impact effect of digital economy on capital factor market distortion,uses the panel vector autoregressive model(PVAR)to explore the impact of digital economy on capital factor market distortion,and uses the dynamic panel model(SYS-GMM)and the dynamic spatial Dubin model to explore the dynamic impact of digital economy on capital factor market distortion.Finally,we analyze the transmission path of the influence of the digital economy on the capital factor market distortion by promoting foreign direct investment,promoting technological innovation and improving human capital.This paper mainly draws the following conclusions:Firstly,the average distortion of China’s capital factor market from 2011 to 2020 is 2.813,and the capital price is characterized by negative distortion.The capital factor market generally has the problem of excessive capital allocation,and there are obvious regional differences in the capital factor market distortion.Secondly,whether using FE model or SYS-GMM model,the digital economy has restrained the capital factor market distortion at a significant level of 1%.The panel vector autoregressive results indicate that,considering time factors,there is a certain time lag in the negative impact of the impact of the digital economy on the capital factor market distortion in the short term.In the medium to long term,the digital economy has a sustained and significant dynamic inhibitory effect on the capital factor market distortion;The capital factor market distortion will have a positive impact on itself,and the capital factor market distortion has a certain degree of accumulation and development inertia;The digital economy has a significant positive impact on itself,with a longer duration,and it has a strong self driving effect.Thirdly,the results of static and dynamic spatial econometric models indicate that considering spatial factors,both in the short and long term,the digital economy significantly suppresses the capital factor market distortion and promotes the neighboring capital factor market distortion.In addition,the promoting effect of local digital economy on the neighboring capital factor market distortion is gradually weakening in the long term.Fourth,in terms of transmission mechanism,digital economy can restrain the capital factor market distortion and improve the efficiency of capital allocation by promoting foreign direct investment,promoting technological innovation and improving human capital.