Fiscal Decentralization, Capital Mismatch and the Regional Innovation Efficiency
HUANG Lihe1,2, SHI Yingxin1
1. School of Marxism, Northwestern Polytechnical University, Xi'an 710129, China; 2. School of Marxism, North China University of Water Resources and Electric Power, Zhengzhou 450046, China
Abstract Based on the panel data of 30 provinces, autonomous regions, and municipalities in China from 2001 to 2018, this paper uses the trans-logarithmic production function and the super-efficiency DEA model to measure the capital mismatch and innovation efficiency of each region, and further uses a two-way fixed effect model to empirically test the impact of fiscal decentralization on regional innovation efficiency and the intermediary mechanism. The results are as follows: From a national perspective, fiscal decentralization plays a significant role in promoting innovation efficiency, mainly by reducing the degree of regional capital misallocation and slowing down the loss of innovation efficiency caused by capital mismatch; From a sub-regional point of view, in provinces with low overcapacity, fiscal decentralization can reduce the loss of innovation efficiency and promotes innovation efficiency by restraining capital misallocation. However, in the areas with high overcapacity, although fiscal decentralization reduces the loss of innovation efficiency by alleviating capital misallocation, it still has a significant inhibitory effect on innovation efficiency. And the capital mismatch is manifested as a cover effect rather than an intermediary effect. In order to improve the efficiency of regional innovation and promote high-quality economic development, we should further improve the fiscal decentralization system, optimize the financial expenditure structure of local governments, and improve the efficiency of capital allocation.
2022, Vol. 39 
