Open government data and resource allocation efficiency: evidence from China

Chenguang Xu, Yiran Chen and Jiaying Dai

Applied Economics, 2025, vol. 57, issue 22, 2887-2904

Abstract: Data are among the most valuable resources. This paper, utilizing the China Tax Survey Database from 2009 to 2016, investigates the impact of Open Government Data (hereafter, OGD) on the efficiency of resource allocation among firms within the Chinese context. The findings indicate that OGD significantly reduces the deviation in firms’ factor inputs, thereby enhancing the efficiency of resource allocation. This is primarily achieved through the optimization of government-business relationships, the reduction of rent-seeking costs, and the decrease in information asymmetry. Given the inclusive nature of OGD, it has a more pronounced positive impact on disadvantaged firms and cities. Furthermore, while OGD directly improves representative firm’s TFP, its greater economic impact lies in elevating aggregate TFP by enhancing resource allocation efficiency. In the current global economy, highly dependent on data-driven processes, the conclusions of this paper provide a novel perspective on the role of OGD in enhancing productivity. This has significant implications for accelerating the implementation of open data policies and enhancing economic efficiency.

Date: 2025
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DOI: 10.1080/00036846.2024.2331430

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