The impact of resource misallocation on green technology innovation: evidence from 288 cities in China

Abstract Resource misallocation, as a key characteristic of China’s ongoing reform process, has emerged as a significant barrier to high-quality economic development. This paper discusses the impact of capital and labor misallocation on green technology innovation (GTI) from the resource allocation...

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Main Authors: Huiping Wang, Xinge Guo
Format: Article
Language:English
Published: Springer Nature 2025-06-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-05225-9
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author Huiping Wang
Xinge Guo
author_facet Huiping Wang
Xinge Guo
author_sort Huiping Wang
collection DOAJ
description Abstract Resource misallocation, as a key characteristic of China’s ongoing reform process, has emerged as a significant barrier to high-quality economic development. This paper discusses the impact of capital and labor misallocation on green technology innovation (GTI) from the resource allocation perspective. The panel data of 288 Chinese cities from 2009 to 2022 are used to empirically test the effects of capital misallocation and labor misallocation on GTI and to further analyze urban heterogeneity and the moderating effect of environmental regulation. The study reveals that there is an inverted U-shaped relationship between resource misallocation and GTI. That is, a slight misallocation of capital and labor due to market mechanisms and government regulations has a promoting effect on GTI. However, when misallocation reaches a certain level, it significantly inhibits GTI. In eastern China, the capital misallocation’s impact on GTI is more significant, while in central and western China, the labor misallocation’s on GTI is more significant. Only in small cities is there an inverted U-shaped relationship between labor misallocation and GTI. In non-resource cities, a reversed U-shaped pattern emerges between capital misallocation and GTI, whereas in resource cities, the two exhibit a U-shaped relationship. Environmental regulation can strengthen the inverted U-shaped relationship between capital misallocation and GTI.
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spelling doaj-art-0c2ec109ee2a4b1d84658b2562835e4e2025-08-20T02:06:23ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-06-0112111310.1057/s41599-025-05225-9The impact of resource misallocation on green technology innovation: evidence from 288 cities in ChinaHuiping Wang0Xinge Guo1Xi’an University of Finance and EconomicsXi’an University of Finance and EconomicsAbstract Resource misallocation, as a key characteristic of China’s ongoing reform process, has emerged as a significant barrier to high-quality economic development. This paper discusses the impact of capital and labor misallocation on green technology innovation (GTI) from the resource allocation perspective. The panel data of 288 Chinese cities from 2009 to 2022 are used to empirically test the effects of capital misallocation and labor misallocation on GTI and to further analyze urban heterogeneity and the moderating effect of environmental regulation. The study reveals that there is an inverted U-shaped relationship between resource misallocation and GTI. That is, a slight misallocation of capital and labor due to market mechanisms and government regulations has a promoting effect on GTI. However, when misallocation reaches a certain level, it significantly inhibits GTI. In eastern China, the capital misallocation’s impact on GTI is more significant, while in central and western China, the labor misallocation’s on GTI is more significant. Only in small cities is there an inverted U-shaped relationship between labor misallocation and GTI. In non-resource cities, a reversed U-shaped pattern emerges between capital misallocation and GTI, whereas in resource cities, the two exhibit a U-shaped relationship. Environmental regulation can strengthen the inverted U-shaped relationship between capital misallocation and GTI.https://doi.org/10.1057/s41599-025-05225-9
spellingShingle Huiping Wang
Xinge Guo
The impact of resource misallocation on green technology innovation: evidence from 288 cities in China
Humanities & Social Sciences Communications
title The impact of resource misallocation on green technology innovation: evidence from 288 cities in China
title_full The impact of resource misallocation on green technology innovation: evidence from 288 cities in China
title_fullStr The impact of resource misallocation on green technology innovation: evidence from 288 cities in China
title_full_unstemmed The impact of resource misallocation on green technology innovation: evidence from 288 cities in China
title_short The impact of resource misallocation on green technology innovation: evidence from 288 cities in China
title_sort impact of resource misallocation on green technology innovation evidence from 288 cities in china
url https://doi.org/10.1057/s41599-025-05225-9
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