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Does industrial intelligence improve resource misallocation? An empirical test based on China.

Shijin Wang1, Mengya Li2

  • 1Jiangsu Normal University, No. 101 Shanghai Road, Tangshan District, Xu Zhou, Jiangsu Province, China.

Environmental Science and Pollution Research International
|June 10, 2022
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Summary
This summary is machine-generated.

Industrial intelligence optimizes resource allocation locally but can worsen it regionally. Environmental pollution interacts with industrial intelligence, affecting resource allocation differently based on capital availability.

Keywords:
Environmental pollutionIndustrial intelligenceMediating effect modelResource misallocationSpatial Durbin model

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Area of Science:

  • Economics
  • Environmental Science
  • Industrial Development

Background:

  • Resource misallocation poses a significant threat to China's economic development.
  • Industrial intelligence presents a potential solution for optimizing resource allocation.

Purpose of the Study:

  • To investigate the relationship between industrial intelligence and resource misallocation in China.
  • To analyze the indirect effects of environmental pollution on resource misallocation through industrial intelligence.

Main Methods:

  • Utilized panel data from 30 Chinese provinces (2010-2020).
  • Employed the spatial Durbin model (SDM) to analyze spatial correlations.
  • Incorporated interaction terms to assess the role of environmental pollution.

Main Results:

  • Industrial intelligence shows significant spatial correlation, improving local resource allocation but exacerbating it in neighboring regions.
  • The interaction between industrial intelligence and environmental pollution has varied effects on capital and labor allocation.
  • In regions with insufficient capital, industrial intelligence worsens resource misallocation; in regions with excess capital, it improves it, with environmental pollution playing a mediating role.

Conclusions:

  • Local industrial development policies must consider regional resource allocation specifics.
  • Policies should focus on improving capital circulation and employment mechanisms to mitigate resource misallocation.
  • Industrial intelligence's impact is context-dependent, influenced by capital availability and environmental factors.