Factor Price Distortion, Technological Innovation, and High-Quality Economic Development

Abstract

The entropy method is used to measure the high-quality economic development levels of 30 provinces (autonomous regions, municipalities) in China from 2011 to 2020, and the impacts of factor price distortion, technological innovation, and their interaction terms on high-quality economic development are analyzed based on Tobit regression. The results show that high-quality economic development of 30 provinces (autonomous regions, municipalities) in China is on the rise; factor price distortion has an inhibitory effect on high-quality economic development, while technological innovation has a promoting effect on high-quality economic development, and both of them have a lag effect; technological innovation level can help alleviate the negative impact of factor price distortion on high-quality economic development; and sub-regional research shows that the inhibitory effect of factor price distortion on high-quality economic development in the east is significantly higher than that in the central and western regions, but the positive effect of technological innovation and the interaction terms between the two on high-quality economic development is significantly lower than that in the central and western regions. Accordingly, it is proposed to optimize top-level design for the two-wheel drive for high-quality economic development, strengthen the primary role of enterprises in innovation to promote high-quality economic development, and optimize the market-oriented allocation of factors to improve the efficiency of resource allocation.

Keywords

factor price distortion / technological innovation / high-quality economic development / entropy method

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2024 Higher Education Press