Intelligent Development and Human Capital Misallocation: Evidence from Chinese Cities

The disruptive changes caused by intelligent development present opportunities to address the misallocation of human capital in a more scholarly manner. Through the use of representative data, we have assessed the intelligent development of 272 cities in China between 2011 and 2019, with the aim of determining whether it can help alleviate human capital misallocation. Our regression analysis has yielded a positive outcome, with the most significant impact coming from the enhancement of intelligent infrastructure. This progress is achieved through two main pathways: the restructuring of income distribution and the facilitation of the movement of factors of production. Additionally, regions with similar economic foundations can benefit from the positive spill-over effects of misallocation mitigation, while geographically close regions may experience negative consequences. Therefore, it is crucial to prioritize and accelerate intelligent development, while also strengthening regional collaboration and focusing on specific areas of improvement.