Biased Technical Progress Among China's Provinces,Capital Accumulation And Economic Growth

The income gap between China's provinces is widening.China is in the middle-income stage and faces middle-income trap problem.Besides,many undeveloped countries that have succeeded in catching up with the developed countries rely on rapid capital accumulation in the early stages of development.These three facts laid the foundation of this paper on economic growth.First of all,this paper employs the CES production function of labor and capital as the input factors and selects the panel data from 1997 to 2014 to estimate the capital intensity and the substitution elasticity of 31 provinces in China by a standard system.Then we estimate the index of biased technical progress of each province and explain the source of biased technical progress from the perspectives of technical innovation and technology diffusion.Besides,the sustainability of the biased technical progress which favors capital is explained from three perspectives: Decreasing share of labor income,human capital and marginal output of capital.The results show that the vast majority of provinces and autonomous regions have a complementary relationship between factors.The eastern region has the largest substitution elasticity of factors and the smallest index of biased technical progress.The technical progress which favors capital comes mainly from technology diffusion rather than technical innovation.Decreasing share of labor income,human capital and marginal output of capital indicate that technical progress will continue to favor capital.Then,China's labor productivity distribution change from the high-thin "single peak" to the chunky "double peak" type and the regional labor productivity gap is gradually becoming larger.The labor productivity is decomposed into technical efficiency,technical progress,material capital deepening and human capital deepening and explores the effect of decomposition to labor productivity.The results show that the accumulation of capital is the main driving force of labor productivity growth.Besides,technical efficiency,technical progress and human capital deepening can't be ignored.Finally,the empirical analysis of the relationship between biased technological progress,capital accumulation and economic growth is tested.And the fit of biased technical progress and capital accumulation is proved.Besides,the path of economic growth path is explored.The results show that biased technical progress which favors capital and capital accumulation significantly promote economic growth.Biased technical progress and capital accumulation is fitted well in China and the central and western regions of China,but the fit in the eastern region of China is not clear.Besides,the economic growth path is different in the eastern,central and western regions of China.