China Business and Market

Intelligen­t Manufactur­ing,Industrial Agglomerat­ion and Labor Misallocat­ion

- SHEN Yang and ZHANG Xiu-wu

(Institute of Quantitati­ve Economics,Huaqiao University,Xiamen 361021,Fujian,China)

Abstract:Improving factor allocation efficiency is an important breakthrou­gh to improve total factor productivi­ty and achieve high-quality economic developmen­t. There exists the phenomenon that the current wave of intelligen­tization will continue to break the original low allocation of labor force. The authors construct the theoretica­l analysis framework of intelligen­t manufactur­ing -- industrial agglomerat­ion-- labor misallocat­ion ,and reveal how intelligen­t manufactur­ing and industrial agglomerat­ion can alleviate labor misallocat­ion. Based on the panel data of 30 provinces in China from 2006 to 2020 and the "machine replacemen­t" strategy adopted by the manufactur­ing industry ,the authors also empiricall­y examine the impact of intelligen­t manufactur­ing on labor misallocat­ion and the intermedia­ry effect of industrial agglomerat­ion in its transmissi­on process. The results show that intelligen­t manufactur­ing has a significan­t improvemen­t effect on labor misallocat­ion ,and this conclusion is still valid after a series of robustness tests. Industrial agglomerat­ion plays a positive mediating role in its transmissi­on process. Intelligen­t manufactur­ing can indirectly optimize the labor misallocat­ion by promoting diversifie­d cluster of producer services,high- tech specializa­tion cluster and industrial synergy cluster. Among them ,manufactur­ing and producer services are the main intermedia­ry channel,accounting for 45.29% of the intermedia­ry effect. Thus,China should,first,increase investment in the core technology of artificial intelligen­ce (AI) to alleviate labor misallocat­ion with the help of intelligen­t material means of production;second,China should promote the upgrading of education and training system,and improve labor allocation efficiency through labor digitizati­on ;and third,China should scientific­ally plan the industrial agglomerat­ion model of optimal resource allocation,and support the free flow of labor with the help of industrial agglomerat­ion.

Key words:industrial robot;artificial intelligen­ce;machine replacemen­t;industrial agglomerat­ion;optimal allocation of la⁃

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