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Open Access Journal Article

Ways to improve cross-regional resource allocation: Does the development of digitalization matter?

by Haitao Wu a orcid Yu Hao a,* orcid Chuanzhen Geng b orcid Weiheng Sun c orcid Youcheng Zhou d orcid  and  Feiling Lu e orcid
a
School of Management and Economics, Beijing Institute of Technology, Beijing, China
b
Rotman Business School, University of Toronto, Mississauga, Canada
c
Business School, Imperial College London, London, UK
d
Department of Accounting, Southampton Business School, University of Southampton, Southampton, UK
e
College of Letters & Science-Economics Dept, University of Wisconsin-Madison, Madison, USA
*
Author to whom correspondence should be addressed.
Received: 1 April 2023 / Accepted: 3 June 2023 / Published Online: 9 June 2023

Abstract

The long-term extensive economic development has caused China's resource and environmental problems, especially the resource misallocation. The way China prioritises its limited resources is being significantly impacted by the rise of the digital economy and the interconnectedness of new technologies and the real economy. This paper quantitatively examines the linear and nonlinear impacts and mechanisms of digital development represented by internet development. With a series of empirical tests, we found that the internet development has significantly inhibited the resources misallocation, and the conclusion is still valid in the robustness test with internet popularization and internet infrastructure as the core explanatory variables. In addition to the marketization, internet development can further inhibit resource misallocation by promoting financial development, openness, urbanization and industrial structure. The findings of threshold regression suggest that the inhibitory effect of internet growth on resource misallocation becomes more visible as the degree of financial development and industrial structure increases; with the higher degree of urbanisation and marketization, although the internet development has always played an inhibitory role on resource mismatch, the inhibitory effect first increases and then decreases; with the improvement of openness, the hindering impact of internet growth on resource mismatch becomes more visible as the degree of financial development and industrial structure increases.


Copyright: © 2023 by Wu, Hao, Geng, Sun, Zhou and Lu. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Wu, H.; Hao, Y.; Geng, C.; Sun, W.; Zhou, Y.; Lu, F. Ways to improve cross-regional resource allocation: Does the development of digitalization matter?. Journal of Economic Analysis, 2023, 2, 7. https://doi.org/10.58567/jea02040001
AMA Style
Wu H, Hao Y, Geng C, Sun W, Zhou Y, Lu F. Ways to improve cross-regional resource allocation: Does the development of digitalization matter?. Journal of Economic Analysis; 2023, 2(4):7. https://doi.org/10.58567/jea02040001
Chicago/Turabian Style
Wu, Haitao; Hao, Yu; Geng, Chuanzhen; Sun, Weiheng; Zhou, Youcheng; Lu, Feiling 2023. "Ways to improve cross-regional resource allocation: Does the development of digitalization matter?" Journal of Economic Analysis 2, no.4:7. https://doi.org/10.58567/jea02040001
APA style
Wu, H., Hao, Y., Geng, C., Sun, W., Zhou, Y., & Lu, F. (2023). Ways to improve cross-regional resource allocation: Does the development of digitalization matter?. Journal of Economic Analysis, 2(4), 7. https://doi.org/10.58567/jea02040001

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