Technical Change and Factor Bias in Polish Industry (1962-1983)

Katherine Terrell

The Review of Economics and Statistics, 1993, vol. 75, issue 4, 741-47

Abstract: This paper provides improved estimates of technological change and the first estimates of factor bias in Polish industry. The analysis uses newly generated data on Western capital (the factor assumed responsible for technical change), adjusts capital for capacity utilization, and tests for more complex specifications of the production function. The major findings are (1) the trend in technical change was nonincreasing over the period and technological change was Western-capital-using in only two industries (suggesting the government misallocated resources), and (2) technical change was nonneutral in six of the eight industries (suggesting the existing literature suffers from misspecification). Copyright 1993 by MIT Press.

Date: 1993
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