Chinese Regional Factor Endowments And Industrial Technology Selection Bias

Since the implementation of reform and opening up, Chinese economic growth rapid with remarkable results.But given the different of initial factor endowments structures between regions and leading to differences in relative factor prices, the development of the various regions exist disparity in factor proportions used in the production. Therefore, how each region according to its own endowment structure characteristics to reducing regional economic disparities, once again become a hot research scholars at home and abroad. Along with the theoretical research, the empirical analysis also gradually expanded. Traditional international economics, in accordance with the principle of comparative advantage in the production of local activities is the main way that a regional basis to achieve long-term sustainable economic growth advantage, although the initial endowment of each region structural differences can promote specialization, increasing labor rates, thus contributing to regional economic growth, but in theory, regional endowment structure and regional economic growth is not necessarily a causal link. In order to solve the endowment structure and economic growth logically associated problems, it is necessary to draw with spatial economics and development economics on technology choice theory, the theory of international economics which also subject to a more microscopic evolution provides a research orientation.In this paper,31provinces of China in the industrial sector is the study of the subject, according to the introduction of factor endowments coefficient to measure the endowment structure of the different parts and industrial technology bias coefficient to measure the industrial sector of the different parts, technology choice situation, and then explore the region’s endowment structure on the regional industrial sector bias of technical options. Trying to build the bridge of regional factor endowment and Chinese industrial growth as:factor endowment structure differences cause’s relative prices different. Under the assumption that in firm profit maximization and faced with the same kinds of products of the same cost of production, industrial manufacturers began intensive use local factors of production is relatively inexpensive, and accordingly develop suitable local industrial development of technologies to promote local economic development, that region has biased selection of industrial technology.Study found that, on one hand, China is not only the regional differences in factor endowments, but in different years, there are different regions also having differences in factor endowments; on the other hand, not all regions of Chinese industrial sector are in accordance with the principle of comparative advantage in the production activities. In some areas, industrial sector did not choose to adapt to the local factor endowments techniques, namely the industrial sector technology choices with local endowment structure deviate. These industrial sectors are more concentrated in some of the capital with a specific-labor ratio sectors, such as textiles and metal ores relevant departments.Furthermore endowment structures on the impact of different industrial sectors are not the same.