Vertical structure, capital misallocation and capital allocation efficiency of the real economy

This paper studies the impact of vertical structure on the capital allocation efficiency of the real economy from a theoretical point of view, and on this basis, it explores how the impact is formed through the path of capital misallocation. Then, it conducts an empirical test on the above analysis by using the annual panel data of different provinces. The results show that: (1) both the vertical structure and capital misallocation reduce the capital allocation efficiency of the real economy. From the perspective of the mechanism of action, capital misallocation plays a part in mediating the effect of vertical structure on the capital allocation efficiency of the real economy. Specifically, the deepening of vertical structure leads to capital misallocation, which further reduces the capital allocation efficiency of the real economy. (2) In the subregional analysis of the east, central and west regions of China, the capital allocation efficiency of the real economy in each region is effective, and the vertical structure and capital mismatch have an inhibitory effect on it. (3) In the extended analysis of the influence of government subsidies obtained by state-owned enterprises on the capital allocation efficiency of the real economy, the results show that government subsidies have an inhibitory effect.