Author(s)

Long Wei, Yanan Wu

School of Economics, Wuhan University of Technology, Wuhan, China.

Under the development mode of government-led industrial agglomeration, most enterprises are motivated by the purpose of obtaining “policy rent”, which has a negative impact on the improvement of resource allocation efficiency. Therefore, based on Hsieh & Klenow’s resource mismatch theory, this paper measures the resource mismatch index of 30 provinces and empirically tests the impact of government-led industrial agglomeration on resource allocation efficiency. The results show that the tendency of “free-ride” caused by government intervention leads to the U-shaped change trend of industrial agglomeration on resource allocation efficiency. This paper discusses the feasible options to improve the efficiency of resource allocation under the joint action of market mechanism and moderate government intervention.

Government-Led, Industrial Agglomeration, Resource Allocation Efficiency, Resource Mismatch

Wei, L. and Wu, Y. (2021) The Influence of Government-Led Industrial Agglomeration on the Efficiency of Resource Allocation—Evidence from 30 Provinces in China over 2000-2017. American Journal of Industrial and Business Management, 11, 157-171. doi: 10.4236/ajibm.2021.112010.