Home           Contact us           FAQs           
     Journal Home     |     Aim & Scope    |    Author(s) Information      |     Editorial Board     |     MSP Download Statistics
2016 (Vol. 8, Issue: 1)
Research Article

Capital Misallocation, Financial Development and Technological Progress in China

Zhang Jiacheng and Shi Zhangming
School of Economics and Management, Hubei Polytechnic University, Huangshi, Hubei 435003, China

DOI: 10.19026/crjet.8.3067
Submitted Accepted Published
December ‎5, ‎2015 April ‎5, ‎2016 November 20, 2016

  How to Cite this Article:

Zhang Jiacheng and Shi Zhangming, 2016. Capital Misallocation, Financial Development and Technological Progress in China.  Current Research Journal of Economic Theory, 8(1): 1-5.

DOI: 10.19026/crjet.8.3067

URL: http://www.maxwellsci.com/jp/mspabstract.php?jid=CRJET&doi=crjet.8.3067


In order to study the relationship between capital misallocation, financial development and technological progress, we did this research. Dual economy structure in China makes the capital allocation to no profit and the technological progress mostly depends on capital accumulation in modern China. Therefore, capital misallocation can restrict a technical progress in China. Financial development can ameliorate the capital misallocation by improving marketization of capital allocation and stiffening the budget line of state-own enterprises. Taking account of the gap between different areas of China economic development, this study empirically analyzes financial development accelerates the technological progress by ameliorating misallocation of capital utilizing the panel data of 30 provinces from 2005 to 2012 in China. The result reveals that pushing the financial development is a valid path of ameliorating misallocation of capital, accelerating the technological progress, developing the area economy, even the changing of the development of China economy from investment-driving to invention-driving.

Abstract PDF HTML

    Competing interests

The authors have no competing interests.
    Open Access Policy

This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.


© The Author(s) 2016

ISSN (Online):  2042-485X
ISSN (Print):   2042-4841
Submit Manuscript
   Current Information
   Sales & Services
Home  |  Contact us  |  About us  |  Privacy Policy
Copyright © 2015. MAXWELL Scientific Publication Corp., All rights reserved