Directed Technical Change, Evolution of Factor Structure and Total Factor Productivity Growth
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| Title | Directed Technical Change, Evolution of Factor Structure and Total Factor Productivity Growth
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| Author | Dong Zhiqing and Chen Rui |
| Organization | Center for Quantitative Economics Research, Jilin University; Business School, Jilin University |
| Email | dongzq@jlu.edu.cn |
| Key Words | Directed Technical Change; Factor Structure; Total Factor Productivity |
| Abstract | The literature focuses on the impact of factor mobility and structure evolution on the total factor productivity, while it dosen’t pay attention to the effect on productivity and the factor which induces factor mobility and structure evolution. This paper adopts Bayesian method to estimate nonlinear CES production function and measures the biased level of technical change and the cause of factor structure and productivity change under the view of biased technical change. It points out that the technical change of our country is capital-biased, and appears biased to capital at the speed of 7%, to improve marginal productivity of capital and then change the factor structure. Through DEA based on the panal data, we find that the effect of biased technical change is not to be effective and the direction of the whole and pure biased effect on productivity is contrary to the mutual effect, and it will promote total factor productivity only if the direction of technical change is suitable with the endowment of factors. |
| Serial Number | WP446 |
| Time | 2013-06-24 |
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