Environmental Regulation, Resource Misallocation and Industrial Total Factor Productivity: A Spatial Empirical Study Based on China’s Provincial Panel Data

A vast theoretical and empirical literature has been devoted to exploring the relationship between environmental regulation total factor productivity (TFP), but no consensus reached reason may be attributed fact that resource reallocation effect of is ignored. In this paper, we introduce misallocation in process discussing impact on TFP, taking China’s provincial industrial panel data from 1997 2017 as a sample, spatial econometric method employed investigate whether affects TFP. The results indicate there U-shaped TFP negative spillover at level China. Both capital labor will lead loss Capital while just opposite. Environmental can produce positive effect, which turn promotes range 28% 33%, are only partial mediator.