Research On The Impact Of Price Distortions Of Labor Factors In My Country On Technological Progress

Technological progress is the driving force of a country's economic growth.The potential of a country's future development can be seen from its technological level and the speed of technological progress.The research on technological progress is of great significance to China's economic development.According to Marx's theory of technological progress,changes in the relative prices of factors of production will affect the direction of enterprises in choosing factors.In the process of production,purposeful technological innovation activities of enterprises also have element bias.The market realizes the reasonable allocation of resources through the use cost of production factors,that is,the price of factors.The change of the price of factors will affect the price comparison level of factor prices,and then guide producers to allocate input among different factors and change the investment structure,thus affecting the direction of technological progress.Labor factor price distortions in China from the early stages of reform and opening up to now there has been,distorted although absolute magnitude and direction of change,but the overall is not reflect labor elements of the actual market demand,causes the enterprise is unable to accurately choose elements of production input,affect the enterprise in the choice of direction in the technological progress.Therefore,it is of great practical significance to study the effect of labor factor price distortion on technological progress.Firstly,this paper analyzes the current situation and causes of labor factor price distortion in China.The cause of labor factor price distortions in our country there are many,mainly including the government conscious intervention to the market based on a certain purpose,such as the household registration system,as a result of labor gap between urban and rural areas,the local government intervention in the regional labor force transfer,industry monopoly caused by administrative power and all kinds of discrimination factors such as the destruction of the Labour market competition mechanism,etc.This paper measured the degree of labor factor price distortion and technological progress deviation index in provincial regions of China from 1990 to2016.The measurement results show that the degree of labor factor price distortion varies greatly among different provinces in China during the measurement period.Generally speaking,the degree of negative distortion in eastern regions is higher than that in western regions.However,as time goes by,the degree of distortion nationwide is decreasing.The results of the technology progress bias index show that the direction of China's technology progress from 1990 to 2016 is generally in favor of capital factors,but the degree of preference for capital is decreasing.By building a dynamic panel model to empirically analyze the impact of labor factor price distortion on the direction of technological progress,it can be concluded that during the research period,labor factor price distortion does have a positive impact on the deviation index of technological progress.The higher the degree of relative distortion of labor factor price is,the higher the relative price of labor factor to capital factor is.Factors that influence the direction of technological progress include the degree of market,the level of opening to the outside world and investment in research and development,Among them,the degree of R&D investment and market have a negative impact,and the level of opening up has a positive impact.In addition,the impact of labor factor price distortion on technological progress is regional heterogeneous,with the eastern region having the largest impact.In view of the distortion of labor factor price,the government can take measures to accelerate the construction of factor market and improve the wage standard.