Capital Deepening, Technology Selection And Study On The Dynamic Relationship Between China's Industrial And Technological Progress

Since China's reform and opening, the mode of technical progress of Chinese Industry has been changing, "Early Captial Deepning" lead to the bias of technical choice and industrial heavilization and chemicalization. It will bring down the growth of China's economy, the labor element will be continually driven out by the capital element, which violates comparative advantage strategy. Therefore considering the fact of Chinese technical progress, it's necessary for us to kown our contry's finance development situation, and analyse the influence mechanism of these variables.This paper based on manufacturing function theory, we attempt to construct new model to explain the reason of technical progress alteration in the view of capital deepening , financial factors and technical choice, then discuss the influence of technical progress alteration on the practice of Chinese Industrialization, this rearch has important signification both in theory and reality.The Testpaper's main work and innovation includes:(1)firstly make a data description and revaluation on capital deepening's trends and characters of Chinese industry, then choose and value the Chinese financial development index, the special phenomenon of "double deepening" can be observed to reveal a certain-ranked consistency and correlation between capital deepening and financial deepening;(2)we construct two indexes which include technical progress intensity and bias , and introduce technical choice index to measure the technical progress, it is conctuded that technical progress of Chinese industry is always capital biased or labour-saving biased;(3) we uses Cointegrating method, Granger Causality Test and Generalized Impulse Response to do empirical rearch, including discuss dynamic linkages among financial development variables and indusrial capital deepening,and annalyse dynamic linkages and influence mechanism among technical progress,technical choice and capital deepenning from 1978 to 2005, we suggests that industry development policy should follow comparative advantage strategy, selects appropriate technologies that match economy's endowment structure through industrial technology introduction and innovation, improve china's industrial restructing, meanwhile we should accelerate the process of financial deepening and marketization, it also proposes to take the path of New-pattern Indusrialization.