Factor Price Distortion and Direction of China's Technological Progress
Xu Yingying1,2,Li Ping3
1.Institute of International Economics,School of Economics,Nankai University,Tianjin 300071,China; 2.Collaborative Innovation Center for China Economy,Tianjin 300071,China; 3.Shandong University of Technology,Zibo 255012,China
Abstract:Based on endogenous economic growth theory,this paper studied,from two perspectives:independent R&D and technical import,the relationship between factor market's distortion and the direction of technological progress.Then using China's provincial panel data in 1998—2015,we measured the degree of factor distortion and direction of China technological progress for empirical test.Results show,by the means of independent R&D and technical import,factor market's distortion has inhabitory effect on capital-biased technical progress,and the overall effect is also negative.Further,the variable coefficient model reveals the impacts of factor market's distortion has regional heterogeneity.The conclusions of this paper make better to understand the role of factor market's distortion for technological progress and economic growth
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