Research On The Influence Of Capital Embodied Technological Progress On China's Consumption Rate

Under the circumstances that China's investment drives economic weakness and decline in export growth,effectively matching technological progress and consumption rate to coordinate supply and demand is an important way to achieve high-quality economic growth.Therefore,it is crucial to clarify the main form of technological progress in China – how the capital embodied technological progress has had an impact on the consumption rate.First,construct a theoretical analysis framework for the direct and indirect effects of capital embodied technological progress on consumption rates.First,it analyzes the direct impact of capital embodied technological progress on consumption rate,but the effect of direct influence cannot be determined theoretically.Secondly,based on the production function,combined with the substitution of factors,this paper studies the indirect impact of capital embodied technological progress on consumption rate through factor income distribution.The analysis shows that the indirect impact of capital embodied technological progress on consumption rate is closely related to factor substitution elasticity.Therefore,theoretical studies have shown that the influence of capital embodied technological progress on consumption rate depends on the combined effects of direct and indirect effects,which cannot be determined theoretically,and demand is helpful for empirical testing.Secondly,empirically examine the impact of capital embodied technological progress on China's consumption rate.First,based on China's data from 1980 to 2017,the ridge regression method was used to test the overall impact of capital embodied technological progress on China's consumption rate.The empirical results show that the improvement of capital embodied technological progress does have an adverse impact on China's consumption rate.Second,based on China's data from 1980 to 2017,the mediation effect analysis method is used to distinguish the direct and indirect effects of capital embodied technological progress on China's consumption rate.The mediating effect analysis shows that the direct and indirect effects of capital embodied technological progress on China's consumption rate are significantly negative,and the negative direct effect exceeds the negative indirect effect,and the total effect is also negative.Thirdly,it examines the causes of the inhibition of capital embodied technological progress on China's consumption rate.Utilizing the endogenous mechanism of technological advancement,it replaces the technological advancement of capital embodyment with factors that determine the technological advancement of capital embodyment,and empirically tests the impact of these factors on China's consumption rate.The test results show that imports(especially machine equipment imports)and R&D,which determine the technological advancement of capital embodying,have a depressing effect on China's consumption rate.Finally,the main conclusions and implications.Based on the research conclusions,it is proposed to actively explore ways to ease the trade-off between China's consumption rate and capital embodied technological progress,including: by increasing the level of human capital,importing machinery and equipment containing more labor,and guiding the machinery and equipment brought by foreign direct investment.Other methods of technology include multi-use labor technology and investment in the field of multi-purpose labor,while appropriately changing the direction of research and development,effectively alleviating the trade-off between capital embodied technological progress and consumption rate.