The impact of data element marketization on the financial resource allocation efficiency: A study based on provincial panel data

With the advancing marketization of data element, the efficiency of its circulation and application potential have been further unleashed. In the financial sector, the marketization of data element has become a vital approach to elevating the allocation efficiency of financial resource. This study draws upon a provincial-level panel dataset covering 30 Chinese provinces (municipalities included) from 2014 through 2023. The entropy weighting method constructs the data element marketization index, while the super-efficiency BCC model (Banker-Charnes-Cooper model) is employed to measure the financial resource allocation efficiency. Utilizing a dual fixed-effects model, we empirically investigate how data element marketization affects financial resource allocation efficiency and the potential channels involved. The empirical results show that data element marketization significantly improves the allocation efficiency of financial resource. The robustness of our conclusions is supported by tests for endogeneity, alternative measures of the explanatory variable, exclusion of exceptional years, and winsorization. Mechanism tests indicate that data element marketization influences financial resource allocation efficiency by scaling up loans from financial institutions and reducing regional financial risk level. The heterogeneity analysis reveals a more pronounced promotional effect from data element marketization in the eastern regions. Accordingly, governments should further advance the market-oriented reform of data element. Meanwhile, financial institutions ought to strengthen data-driven business innovation, thereby jointly enhancing the allocation efficiency of financial resource.