| Abstract | This article builds a Marxism two sectors economic growth model, which combines the Marx's labor theory of value, the theory of surplus value, the two sectors model, the simple reproduction and expanded reproduction formula and the theory of average profit rate, etc. The contribution of this research takes into account the average profitability of the two sectors, introduces the investment of fixed assets in the production process, meanwhile sets the technological progress of labor-saving, and derives the growth formulas of the total social products or the national income in the two sectors combined with Marx's expanded reproduction formula. Through adopting the Chinese Macroeconomic data to empirically test the important assumptions and conclusions in the model, the empirical results support the model specifications that the laborers’ real wages and labor productivity increase at the same proportion, and the same increasing proportion between labor productivity and means of production, together with the technological progress of labor-saving. Judging from the practice of China's economic growth, the law of “priority growth in the means of production sector” does exist. However, the general rate of profit expressed by prices remains relatively stable most of the time. |