Biased policy, human capital distribution and green technical progress

Abstract

As biased policies lead to low efficiency of resource allocation and waste, this study compares the operating environment of state-and non-state-owned enterprises, and confirms the distortion of human capital distribution in these two types of enterprises caused by biased policies. Further, this study verifies the decline of the green technology progress rate resulting from distribution distortion, concluding that market competition can improve human capital distribution efficiency, but this effect declines due to a biased policy environment. Specifically, there is a U-shaped relationship between market competition and green technology: weak market competition is not favorable to green technology progress and vice versa.