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An analysis of the synergistic influence of innovation factor resource allocation, employment quality, and financial resource misallocation

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  • Wang, Ting
  • Chen, Yuhan

Abstract

The aim of this study is to investigate the relationship between the innovation factor allocation efficiency, employment quality, and financial resources misallocation, and to analyze the moderating effect of employment quality between factor allocation efficiency and financial resources misallocation. In the research, we utilize provincial panel data from 2012 to 2023 and find that innovation factor allocation efficiency has a significantly negative effect on financial resources misallocation; employment quality also significantly negatively affects financial resource misallocation. The second part of the empirical analysis indicates that employment quality has a moderating effect on the relationship between innovation factor allocation efficiency and financial resources misallocation. In addition, the heterogeneity analysis indicates differences in the relationship by region as based on per capita GDP, and that the moderating effect of employment quality associated with the effect of innovation factor allocation efficiency on financial resource misallocation is significantly greater for regions with higher levels of per capita GDP. Overall, this research can help policy makers to prioritize tools, including the optimization of innovation factors and composition of employment quality to mitigate financial resource misallocation and promote high-quality economic growth.

Suggested Citation

  • Wang, Ting & Chen, Yuhan, 2025. "An analysis of the synergistic influence of innovation factor resource allocation, employment quality, and financial resource misallocation," Finance Research Letters, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pa:s1544612325015685
    DOI: 10.1016/j.frl.2025.108314
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    1. Yin, Jun & Kang, Dengyin & Wang, Wei, 2026. "Financial agglomeration, resource misallocation and urban economic resilience," Finance Research Letters, Elsevier, vol. 89(C).

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