Research On The Influence Of Biased Technological Progress On Transitions Of Economic Growth Mode In China

Chinese economy has experienced sustained growth over thirty years, sincethe reform and opening up. However, it should not be ignored is that theextensive economic growth mode has been throughout the process of rapideconomic growth, which is mainly characterized by greater resource consumption,relying on capital investment, income inequality and low efficiency. Along withthe accelerate development of heavy industry in the current period, economicgrowth relying on high capital investment is so prominent that energy supplyand environmental protection is facing tremendous pressure, the causes ofeconomic growth mode and how to change it has become a key to achievingsustainable economic development.For these reasons, this paper summed up the initial stage and the advancedstage based on the experience of the economic growth in developed countries, inaccordance with this standard, application economic growth accounting methodanalysis of macroeconomic data from1978to2012in china, calculated the trendof labor productivity, total factor productivity and capital-output ratio, and thenestimate Chinese economic growth mode by compared with the experience ofdeveloped countries. On the basis of this empirical research, using biasedtechnical progress theory based on factor augmenting production functionanalysis the main reasons of Chinese economic growth type from long-term andshort-term aspects. Analysis found that capital-biased technical progress induceeconomic growth to mainly rely on capital investment, thus increasing the shareof capital income and reducing the growth rate of total factor productivity, andthis capital-biased technical progress can explain the change trend of economicvariables in the initial economic growth stage. Further theoretical research found that, the labor-biased technical progress can increase the share of labor incomeand total factor productivity, by this way the economic growth mode willtransform to the advanced stage from the initial stage, and achieve sustainedeconomic growth with the narrow gap between rich and poor. Form empiricalresearch and theoretical analysis，this paper argues that taking induced innovationin the production field can promote technical change and then propose specificpolicy recommendations according to changes of variables in the model.