IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i14p8338-d857883.html
   My bibliography  Save this article

Causes and Evolution Characteristics of Green Innovation Efficiency Loss: The Perspective of Factor Mismatch under Local Government Competition

Author

Listed:
  • Fei Liu

    (School of Philosophy, Northwest University, Xi’an 710127, China
    School of Public Administration, Northwest University, Xi’an 710127, China)

  • Ting Nan

    (School of Public Administration, Northwest University, Xi’an 710127, China)

  • Xinliang Wang

    (School of Public Administration, Northwest University, Xi’an 710127, China)

Abstract

The objective of this paper is to measure the efficiency loss of green innovation caused by local government competition and explore its causes and evolution characteristics. Based on the equimarginal principles such as the deviation of the allocation of green innovation output factors, this paper uses the panel data of China’s provinces (excluding Tibet, Hong Kong, Macao and Taiwan) from 2000 to 2020 and employs the spatial panel measurement model and the Kernel density estimation. The study finds that first, local government competition causes the mismatch of local innovation factors not only locally but also in neighboring regions. Second, the mismatch of innovative talents and capital caused by local government competition lowers the green innovation efficiency. Third, the shortage of innovative talents caused by local government competition is the main reason for the loss of green innovation efficiency in Beijing, Tianjin, and Shanghai. Fourth, the degree of efficiency loss of green innovation at the provincial level in China is heterogeneous in government competition strategies, and the loss due to tax competition is the most significant. Fifth, although the loss of green innovation efficiency generally decreases yearly, in the future, the institutional competition will still hinder the improvement of green innovation efficiency in the eastern, central and western regions of China. Our policy suggestions include promoting regional cooperation and cultivating innovative talents to further improve the efficiency of green innovation.

Suggested Citation

  • Fei Liu & Ting Nan & Xinliang Wang, 2022. "Causes and Evolution Characteristics of Green Innovation Efficiency Loss: The Perspective of Factor Mismatch under Local Government Competition," Sustainability, MDPI, vol. 14(14), pages 1-29, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8338-:d:857883
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/14/8338/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/14/8338/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Masayoshi Hayashi & Robin Boadway, 2001. "An empirical analysis of intergovernmental tax interaction: the case of business income taxes in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 481-503, May.
    2. Minoru Nakada, 2010. "Environmental Tax Reform and Growth: Income Tax Cuts or Profits Tax Reduction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(4), pages 549-565, December.
    3. Bucovetsky, Sam & Haufler, Andreas, 2008. "Tax competition when firms choose their organizational form: Should tax loopholes for multinationals be closed," Journal of International Economics, Elsevier, vol. 74(1), pages 188-201, January.
    4. Luisa Corrado & Bernard Fingleton, 2012. "Where Is The Economics In Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 210-239, May.
    5. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    6. Li, Hongbin & Zhou, Li-An, 2005. "Political turnover and economic performance: the incentive role of personnel control in China," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1743-1762, September.
    7. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2003. "Accounting for the Great Depression," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 27(Spr), pages 2-8.
    8. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    9. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    10. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    11. Rogge, Karoline S. & Schleich, Joachim, 2018. "Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany," Research Policy, Elsevier, vol. 47(9), pages 1639-1654.
    12. Loren Brandt & Trevor Tombe & Xiadong Zhu, 2013. "Factor Market Distortions Across Time, Space, and Sectors in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 39-58, January.
    13. Loren Brandt & Trevor Tombe & Xiadong Zhu, 2013. "Factor Market Distortions Across Time, Space, and Sectors in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 39-58, January.
    14. Aoki, Shuhei, 2012. "A simple accounting framework for the effect of resource misallocation on aggregate productivity," Journal of the Japanese and International Economies, Elsevier, vol. 26(4), pages 473-494.
    15. AM.Priyangani Adikari & Haiyun Liu & MMSA. Marasinghe, 2021. "Inward Foreign Direct Investment-Induced Technological Innovation in Sri Lanka? Empirical Evidence Using ARDL Approach," Sustainability, MDPI, vol. 13(13), pages 1-16, June.
    16. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1091-1135.
    17. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2002. "Accounting for the Great Depression (technical appendix)," Working Papers 619, Federal Reserve Bank of Minneapolis.
    18. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
    19. Poncet, Sandra, 2003. "Measuring Chinese domestic and international integration," China Economic Review, Elsevier, vol. 14(1), pages 1-21.
    20. Tong Zhao & Haihua Zhou & Jinde Jiang & Wenyan Yan, 2022. "Impact of Green Finance and Environmental Regulations on the Green Innovation Efficiency in China," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    21. Alwyn Young, 2000. "The Razor's Edge: Distortions and Incremental Reform in the People's Republic of China," NBER Working Papers 7828, National Bureau of Economic Research, Inc.
    22. Lung-Fei Lee, 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, Econometric Society, vol. 72(6), pages 1899-1925, November.
    23. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    24. J. Paul Elhorst, 2014. "Matlab Software for Spatial Panels," International Regional Science Review, , vol. 37(3), pages 389-405, July.
    25. Wugan Cai & Peiyun Ye, 2022. "Local-neighborhood effects of different environmental regulations on green innovation: evidence from prefecture level cities of China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 4810-4834, April.
    26. Cátia Rosário & Celeste Varum & Anabela Botelho, 2022. "Impact of Public Support for Innovation on Company Performance: Review and Meta-Analysis," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    27. Deng, Yaling & You, Daming & Wang, Jingjing, 2022. "Research on the nonlinear mechanism underlying the effect of tax competition on green technology innovation - An analysis based on the dynamic spatial Durbin model and the threshold panel model," Resources Policy, Elsevier, vol. 76(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peng Li & Xiangrong Li & Gonglin Yuan, 2023. "Cross-Regional Allocation of Human Capital and Sustainable Development of China’s Regional Economy—Based on the Perspective of Population Mobility," Sustainability, MDPI, vol. 15(12), pages 1-32, June.
    2. Lu Liu & Shenshen Si & Jing Li, 2023. "Research on the Effect of Regional Talent Allocation on High-Quality Economic Development—Based on the Perspective of Innovation-Driven Growth," Sustainability, MDPI, vol. 15(7), pages 1-21, April.
    3. Xiaosan Zhang & Xiaojie Hu & Fang Wu, 2022. "Fiscal Decentralization, Taxation Efforts and Corporate Green Technology Innovation in China Based on Moderating and Heterogeneity Effects," Sustainability, MDPI, vol. 14(22), pages 1-21, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Bin & Yu, Minxiu & Zhu, Yucheng & Bao, Pinjuan, 2021. "Unveiling the driving factors of carbon emissions from industrial resource allocation in China: A spatial econometric perspective," Energy Policy, Elsevier, vol. 158(C).
    2. Bo, Shiyu, 2020. "Centralization and regional development: Evidence from a political hierarchy reform to create cities in china," Journal of Urban Economics, Elsevier, vol. 115(C).
    3. Laiqun Jin & Xiuyan Liu & Sam Hak Kan Tang, 2021. "High-Technology Zones, Misallocation of Resources among Cities and Aggregate Productivity: Evidence from China," Economics Discussion / Working Papers 21-11, The University of Western Australia, Department of Economics.
    4. Shawn Xiaoguang Chen & Yudan Cheng & Liutang Gong & Wenjia Tian, 2023. "A Big Push of Panda from the Ground: Land Subsidy and Structural Transformation in China," Economics Discussion / Working Papers 23-09, The University of Western Australia, Department of Economics.
    5. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    6. repec:esx:essedp:729 is not listed on IDEAS
    7. Lihong Yang & Jinwen Cheng & Linhui Yu & Chenhua Li, 2020. "What Factors Can Explain the Rising Spatial Disparity in Economic Activities in China?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(3), pages 51-72, May.
    8. Jie Bai & Jiahua Liu, 2019. "The Impact of Intranational Trade Barriers on Exports: Evidence from a Nationwide VAT Rebate Reform in China," CID Working Papers 373, Center for International Development at Harvard University.
    9. Wei Tang & Geoffrey J.D. Hewings, 2017. "Do city–county mergers in China promote local economic development?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(3), pages 439-469, July.
    10. Eberhardt, Markus & Wang, Zheng & Yu, Zhihong, 2016. "From one to many central plans: Drug advertising inspections and intra-national protectionism in China," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 608-622.
    11. Pablo D Fajgelbaum & Eduardo Morales & Juan Carlos Suárez Serrato & Owen Zidar, 2019. "State Taxes and Spatial Misallocation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 333-376.
    12. Lu Ming & Zhao Chen & Yongqin Wang & Yan Zhang & Yuan Zhang & Changyuan Luo, 2013. "China’s Economic Development," Books, Edward Elgar Publishing, number 14502.
    13. Yan, Linnan & Tu, Menger & Chagas, André L.S. & Tai, Lufeng, 2022. "The impact of high-speed railway on labor spatial misallocation—Based on spatial difference-in-differences analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 164(C), pages 82-97.
    14. Zheng Li & Jorge Martinez-Vazquez, 2018. "Fiscal Decentralization and Interregional Capital Misallocation: Evidence from China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1816, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    15. Zhou, Mohan & Lin, Faqin & Li, Tan, 2016. "Remote markets as shelters for local distortions: Evidence from China," China Economic Review, Elsevier, vol. 40(C), pages 241-253.
    16. Xi Li & Xuewen Liu & Yong Wang, 2015. "A Model of China's State Capitalism," HKUST IEMS Working Paper Series 2015-12, HKUST Institute for Emerging Market Studies, revised Feb 2015.
    17. Peiwen Bai & Wenli Cheng, 2016. "Labour misallocation in China: 1980--2010," Applied Economics, Taylor & Francis Journals, vol. 48(25), pages 2321-2332, May.
    18. Chenggang Xu, 2011. "The Fundamental Institutions of China's Reforms and Development," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1076-1151, December.
    19. Trenczek, Jan & Wacker, Konstantin M., 2023. "Human Capital Misallocation and Output per Worker Differences: Beyond Cobb-Douglas," GLO Discussion Paper Series 1331, Global Labor Organization (GLO).
    20. Juan Tang & Fangming Qin, 2022. "Analyzing the impact of local government competition on green total factor productivity from the factor market distortion perspective: based on the three stage DEA model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 14298-14326, December.
    21. Pablo D. Fajgelbaum & Edouard Schaal, 2020. "Optimal Transport Networks in Spatial Equilibrium," Econometrica, Econometric Society, vol. 88(4), pages 1411-1452, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8338-:d:857883. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.