Research on System Dividends of Supply Side Structural Reform Based on Resource Misallocation Theory

Based on the resource misallocation theory, this paper analyzes the relationships between resource misallocation and supply side structural reform, reveals that improving resource misallocation can release system dividends of supply side structural reform, and proposes specific measures for releasing system dividends of supply side structural reform on the basis of comprehensively summarizing influence factors of resource misallocation. The results showed that resource misallocation theory is to reduce resource misallocation in order to improve total factor productivity (TFP), system change which is the core of supply side structural reform aims to improve the efficiency of resource allocation in order to improve TFP; therefore, improving resource misallocation will release system dividends of supply side structural reform. We should formulate effective measures to comprehensively reduce resource misallocation within intra-industry, inter-industry and the regions in China, which has great significance to release system dividends of supply side structural reform.