An empirical study on the endogeneity of directed technical change in China

Huihui Liu and Hao Liu

Economic Research-Ekonomska Istraživanja, 2022, vol. 35, issue 1, 2693-2711

Abstract: Research on the endogeneity of directed technical change is very interesting and meaningful. If the direction of technical change is endogenous, policy makers can adjust the technical change value of factors according to specific purpose. We establish a theoretical model of the direction of technical change, relative price of factors and international trade under nested and non-nested CES production functions. We use mature measurement methods such as the unit root test and cointegration analysis to test the theoretical model in practice. We find that the direction of technical change is endogenous in China. The change in the relative price of factors in China causes a technical change in the same direction. Meanwhile, international trade intensifies and accelerates the labour augmenting technical change, but blocks the pace of capital augmenting technical change. Under a substitution elasticity of less than one, technical change is biased toward energy and capital in China, and this bias is brought about by the decrease in their relative price and international trade.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2021.1975148 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:reroxx:v:35:y:2022:i:1:p:2693-2711

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2021.1975148

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().