Quantifying Spatial Misallocation : A New Method Independent to the Hk Model

We propose a new method for calculating factor spatial misallocation independent of the HK model. We apply this method and firm microdata to assess spatial misallocation in China from 1998 to 2015. The results show that factor spatial misallocation showed an upward trend from 1998 to 2007 and a downward trend from 2007 to 2015, but the decline was slight. Serious factor spatial misallocation still exists in China's economic system, and the correction of spatial misallocation has limited contribution to China's growth miracle