Research On The Effect Of Directed Technical Change On Transformation And Optimizing Of China's Industrial Structure

The report of the 19th National Congress of the Communist Party of China pointed out:"China's economy has changed from the stage of high-speed growth to the stage of high-quality development,and is in the key period of transforming the mode of economic development,optimizing the economic structure,and transforming the driving force of economic growth.The construction of a modern economic system is an urgent requirement and the strategic goal of China`s development" Since the aggregate of the service sector exceeded that of the secondary industry for the first time in 2013,China has realized the "three,two one" industrial structure for many years.In 2019,although.the proportion of the service sector in China has reached 54%,there is still a lot of work to do.Because we want industrial structure of "Stable agriculture,strong industry and large service industry" in developed countries,then we need to speed up the change and optimizing of industrial structure.In the key stage of "mode transformation and structure adjustment" of China's economy,technical change plays an important role.with the development of theory and practice,people realize that technical change has different "enhancement" effects on factor.On the basis of existing literature research,the thesis includes two parts:the first is the index construction and calculation analysis of the directed technical change;the second is the theoretical research on the influence of the directed technical change on industrial structure's transformation and optimizing through capital and labor technical efficiency;and the empirical research on them.According to Acemoglu,the direct embodiment of the directed technical change is the difference of factor technical efficiency(capital and labor).This paper first constructs and calculates the directed technical change index.Based on the mathematical derivation of CES production function,we get directed technical change index and the substitution elasticity estimation equation.Based on panel data of China's region,industrial and sub-industries,the results of substitution elasticity estimation are obtained by standardizing supply-side system equations and NLSUR estimation.The directed technical change index is calculated.Through the analysis of the three indicators:the directed technical change index,capital technical efficiency and labor technical efficiency.The directed technical change index in China's region,industrial and sub-industries is greater than 0,which is shown as capital-biased technical change,and labor technical efficiency is greater than capital technical efficiency.In the theoretical study,the directed technical change is embedded in CES production function,and the model of multi-sector industrial structure change is established.After the directed technical change changes capital and labor technical efficiency,it will affect the change of capital-labor ratio and output level within departments,and the change of factor flow direction and output ratio between departments,and finally bring about the change of industrial structure.In the empirical study,based on the static panel model,the dynamic panel model,the spatial Durbin model and the mediating effect model are established.By using FE,GMM,FGLS and the spatial econometrics,the regression analysis shows that:1.the directed technical change tends to promote the industrial structure change through four effect paths.First,through "resource reallocation effect",the directed technical change tends to reduce the technical efficiency ratio of capital and labor,change the capital-labor ratio of the three industries,and promote the change of China's industrial structure.Second,through"output effect",under the influence of the directed technical change,labor technical efficiency and capital technical efficiency play a greater role in enhancing the output of the third industry,followed by the second industry,and the first industry is the smallest,and promotes the change of China's industrial structure.Third,through "capital deepening effect",the directed technical change makes the output ratio of primary,secondary and tertiary industries increase in order along the direction of the three industries,which promotes the change of industrial structure.Fourth,through "Engel effect",the directed technical change is also conducive to the change of industrial structure.2.the directed technical change tends to promote the optimization of industrial structure through three effect paths-capital deepening effect,productivity effect,Engel effect.Therefore,under the promotion of the directed technical change,to improve the technical efficiency of labor,it is necessary to improve the employment skills and human capital level.To improve the technical efficiency of capital,it is necessary to guide the flow of capital from the eastern to the central and western regions,and alleviate the capital deepening in some regions,which not only improves their technical efficiency of capital,but also is conducive to regional coordinated development of China.The innovation of this thesis is reflected in the following four aspects.First,it is proposed for the first time to study the influence of the directed technical change on the change and optimization of industrial structure from the perspective of different biased effects of the directed technical change on capital technical efficiency and labor technical efficiency.The second is to set the sector production function of the theoretical model as CES production function,rather than the C-D production function commonly used in literature,to study the directed technical change by changing the capital and labor technical efficiency,changes factor flow,capital-labor ratio and output level,and finally affect the change of industrial structure.The third is to reconstruct the index system of the directed technical change,which can not only determine the factor bias of technical change,but also measure the directed technical change.The fourth is to comprehensively use static panel model,dynamic panel model,spatial Durbin model and mediating effect model to investigate the role and effect of the directed technical change on industrial structure's transformation and optimizing.