Resource misallocation in Chinese manufacturing enterprises: evidence from firm-level data

Despite the important policy and welfare implications of China’s energy issues, to date there has been little investigation from a micro-level perspective of the misallocation of resources in manufacturing enterprises. To fill this gap, this paper deals with resource misallocations in China with special reference to energy and labor inputs. Using a large, novel dataset of manufacturing enterprises from Zhejiang province, we employ a simultaneous…

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