Research On The Relationship Between China's Financial Repression And Technological Advances

In recent years,China's economic growth has slowed down,from the rapid economic growth to a moderate speed economic growth,production efficiency also has declined,and the economic growth has become a hot topic in recent years.In Labor-Intensive areas,there are excessive and heavy industrial enterprises,these enterprises mainly rely on the capital elements investment,relying on the government low interest rate policy support,and excessive dependence on capital input will lead to the decline of capital output,resulting in unreasonable allocation of resources,affecting the business income.These results are related to the government's priority consideration of the heavy industry development strategy.However,the technology lack of innovation is the main problem of these enterprises,can not achieve the goal of production efficiency through technological innovation,only through the factor input to increase output,this will cause negative impact on the enterprise or the whole economic society.Because the economic problem is a deep expression of Technical Progress Bias,this paper studies whether Financial repression has influence on China's Technical Progress Bias from the perspective of Financial repression,and how to influence it.The main contents of this paper are as follows,First,this paper constructs six indicators that can reflect the Financial repression,and carries on the dimensionality reduction and the weighted average of these six variables,and constructs the Financial repression index of the whole country and the provinces from 1978 to 2015.The Financial repression index reflects the degree of government regulation in the financial markets,and the higher the level of government control,the higher the index.Second,this paper deduces the technical level index of capital and labor enhanced technology by using the conditions of maximizing production profit,and deduces the formula of technical progress deviation index.Finally,using the si regression method to find the substitution elasticity of capital and labor,and calculate the Technical Progress Bias index of the whole country and provinces from 1978 to 2015.Third,in order to study the impact of Financial repression on the Technical Progress Bias,this paper uses the Financial repression index as explanatory variables,Technical Progress Bias as the explanatory variables,Technical Progress Bias capital use is recorded as 1,bias labor use is recorded as 0.Using logit model,qualitative analysis of Financial repression will make technological progress biased towards capital use or bias to labor use.Through combing Financial repression and Technical Progress Bias related literature and empirical analysis,this paper mainly obtains the following three conclusions:First,between 1978 and 2015,the overall trend of the national and provincial Financial repression index rose,and the change of Financial repression index data was similar to the history of China's financial development and financial system reform.Second,Jiangsu,Zhejiang,Fujian and Guangdong in 2011,the main trend of technological progress is the use of labor,the whole country and its Yu sheng overall to see that technological progress is biased towards capital use.Among them,because of the particularity of Beijing and Shanghai,the Technical Progress Bias of the two cities is quite different from other provinces,and it mainly tends to labor use.Third,through logit estimation,we found that except 11 regions of Beijing,Tianjin,Hebei,Shanghai,Jiangsu,Zhejiang,Shandong,Guangdong,Yunnan,Gansu and Ningxia,the results of the national and other 17 provinces are significant,that is,Financial repression will lead to Technical Progress Biased towards capital use.The main innovation of this paper is: first,through the perspective of Financial repression to analyze whether Financial repression will lead to the emergence of technological progress bias,will be biased towards the use of capital or labor.Scholars pay little attention to the relationship between Financial repression and Technical Progress Bias,which is the focus of this paper,which can make up for the vacancy in this area.Second,this paper measured the Technical Progress Bias index of the national and provincial from 1978 to 2015,and calculated the technical progress rate of provincial capital and the rate of labor technology progress.Previously,scholars seldom measure the technical progress of each province,such as the index of technical progress,capital and the rate of technological progress of labor.Technological progress and technological innovation are the inexhaustible driving force for the long-term sustainable development of a country,so we should pay attention to the technological progress of enterprises in the process of production and operation.However,there are some problems in the technological progress and technological innovation in the production and operation of enterprises.these problems are how to affect the business efficiency of enterprises,and the impact on the whole social production will be worth my attention.Therefore,this paper conducts an empirical analysis of the path of China's provincial technological progress from 1978 to 2015,to understand the technical progress rate of specific elements in China since the reform and opening up,and the deviation of technological progress in different provinces every year.Finally,combined with the environment of Financial repression in China,the relationship between Financial repression and technological progress bias is analyzed.