Mechanisms and Empirical Analysis of the Effects of Traditional Factor Price Distortions and Technological Progress Bias on Total Factor Productivity
Under the framework of endogenous growth model,this paper utilizes the theory of biased technological progress to construct the CES production function including three traditional factors of production,namely,capital,labor and land,and the enhanced technology of each traditional factor of production,and mathematically decomposes the growth rate of China's economy and the total factor productivity and its growth rate.The results of the decomposition show that,the rate of factor-enhanced technological progress has a bearing on the total factor productivity and its growth rate.In addition,the coordination between the degree of traditional factor deepening and the bias of technological progress,as well as the coordination between the degree of technological deepening and the bias of traditional factor inputs,also have an impact on total factor productivity and its growth rate.This paper uses the degree of distortion of traditional factor prices such as capital,labor,and land,and the index of technological progress bias after taking into account the distortion of factor prices in China during the period of 2004-2017 to conduct an empirical analysis of the trend of total factor productivity and its growth rate in China.The analysis shows that the contribution of the increase in China's total factor productivity to economic growth has been on a downward trend during the sample period,and this decline is mainly caused by the decline in the rate of enhanced technological progress of the traditional factors of production,in which the labor-enhanced and land-enhanced technological progress have all been on an upward trend,but the decline in the rate of capital-enhanced technological progress has led to a decline in the total total factor productivity;the incongruity between the inputs of China's factors,in particular the the incongruity between China's factor inputs,especially the direction of technological progress favored by China's capital and the traditional factor allocation structure of ever-deepening capital deepening,has also partially inhibited the increase in China's total factor productivity.
Traditional Factors of ProductionPrice DistortionsElasticity of SubstitutionTechnological Progress BiasTotal Factor Productivity
万方数据
维普
