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The Direction of Technological Progress in China: Considering Changes of Human Capital |
Jiang Jiaoyan1, Guo Jiqiang2 |
1. School of Public Affairs,Zhejiang University,Hangzhou 310058,China; 2. School of Economics,Zhejiang University,Hangzhou 310058,China |
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Abstract This paper considers the changes of labor input in quality dimension,reestimates the direction of technological progress in China.The results show that the elasticity of substitution between human capital and capital is gross complements,the direction of technological progress is capital biased,and the correlation between the direction of technological progress and the change of factor abundance is more in line with the theoretical expectation.The trend of technological progress is characterized by three stages of fluctuation-capital biased-fluctuation,which is consistent with the trend of labor income share of high fluctuation-decline-low hovering.This paper argues that under the background of economic growth entering a new stage and the labor market factor endowment characteristics going through a transition node in China,it is necessary and important to consider the changes of labor input in the quality dimension in relevant studies.
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Received: 05 February 2021
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