Hosted by the Program on Chinese Cities （PCC）
02/01/2024 3:00 PM-4:00 PM EST
Presenter: Xiaoyu Shao
PhD Candidate, School of Economics and Management, Wuhan University
Supervisor: Prof. Fei Fan
Visiting scholar, University of North Carolina at Chapel Hill
Supervisor: Prof. Yan Song
Abstract：
Decreasing regional resource misallocation contributes to enhancing total factor productivity, thus, accelerating regional development. We constructed a theoretical model and solved its competitive equilibrium to make the hypothesis that technology transfer affects capital and labor misallocation; patent transfer data between Chinese cities were obtained through big data mining to examine the effect of technology transfer on resource misallocation in cities. The results show that technology transfer exacerbates capital misallocation but reduces labor misallocation. These results hold after instrumental variables are used to solve the endogeneity problem and robustness tests. Further research on resource misallocation into over- and under-allocation by region shows that technology transfer has a significant effect on under-allocated regions and will exacerbate capital misallocation in China’s central and eastern regions and reduce labor misallocation in the eastern region. The mechanism analysis shows that technology transfer exacerbates capital misallocation by increasing capital inputs but does not reduce labor mismatch by affecting labor mobility. Our findings will help provide empirical evidence and policy references for optimizing the efficiency of resource allocation and enhancing total factor productivity through technology transactions and factor flows.