Biased Technological Progress, Factor Price Distortion And Factor Allocating Efficiency in China

Biased Technological Progress, Factor Price Distortion And Factor Allocating Efficiency in China | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Biased Technological Progress, Factor Price Distortion And Factor Allocating Efficiency in China Shaojun XU, Xiuyan LIU, Kejin NI This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-3855225/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper constructs a two-regime model with factor flowing, studies the long-term factor allocating structure when there exists differences in biased technological progress between regions, and analyzed the influence of factor price distortion as an endogenous obstacle on factor allocating efficiency. Further, this paper adopts a state space model to estimate the production elasticity of capital and labor of the C-D production function, which in turn describes the time-varying substitution characteristics between labor and capital, and found that the path of Chinese technological progress is gradually shifting from capital biased to labor biased. Finally, in order to capture the improvement in factor allocating efficiency caused by factor reallocating cross regions, this article constructs a new factor allocating efficiency indicator, empirically verifies the relationship between biased technological progress, factor price distortions and factor allocating efficiency by using Chinese provincial-level macro data as well as China Industry Business Performance Database in the period of 2004–2015. On average, for every 1% increase in the biased technology indicator, factor allocating efficiency increases by about 28%; for every 1% increase in the degree of labor price negative distortion, factor allocating efficiency loses by about 22%; and for every 1% increase in the degree of capital price negative distortion, factor allocating efficiency loses by about 4.1%. Substantial heterogeneity is also observed, such as regional heterogeneity, differences in house prices, and degree of marketization. JEL Classification: L52; R52; R12 Biased Technological Progress Factor Price Distortions Factor Allocating Efficiency Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-3855225","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":266865556,"identity":"851ba9a0-7708-4006-b498-6a13f47642cd","order_by":0,"name":"Shaojun XU","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA0klEQVRIiWNgGAWjYDACZuYGIFkjx9je2PjgA3FaGEFajhkz9xxuNpxBnDVgLcyJ7TPS26Q5iNEg387YJvFxDxtj78yHDdIMDHZyug0EtBgcZmyTnPFMhllydmKDcQFDsrHZAUJamBmbjXkOsLEZArUkz2A4kLiNkBb5ZqCWPweYeexvHmw4zEOMFobDjI2PGQ4wSzDOYGxsJkoL0C+ND3sOHDNg7ElsZpxhQIRf5PsPHzjw40BNfWP78ec/PlTYyRHUgm4pacpHwSgYBaNgFOAAAAr2RQRMHBkfAAAAAElFTkSuQmCC","orcid":"","institution":"Southeast University","correspondingAuthor":true,"prefix":"","firstName":"Shaojun","middleName":"","lastName":"XU","suffix":""},{"id":266865557,"identity":"d89e10fe-7c1f-4f8c-b4a5-5c1697179975","order_by":1,"name":"Xiuyan LIU","email":"","orcid":"","institution":"Southeast University","correspondingAuthor":false,"prefix":"","firstName":"Xiuyan","middleName":"","lastName":"LIU","suffix":""},{"id":266865558,"identity":"36298695-5789-4356-bf76-632d828e97e9","order_by":2,"name":"Kejin NI","email":"","orcid":"","institution":"Southeast University","correspondingAuthor":false,"prefix":"","firstName":"Kejin","middleName":"","lastName":"NI","suffix":""}],"badges":[],"createdAt":"2024-01-12 01:29:08","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-3855225/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-3855225/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":49863707,"identity":"964f5b2f-0354-4dd8-8d63-af83373c1216","added_by":"auto","created_at":"2024-01-19 09:38:34","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":455608,"visible":true,"origin":"","legend":"","description":"","filename":"ManuscriptFilewithauthor.pdf","url":"https://assets-eu.researchsquare.com/files/rs-3855225/v1_covered_c2fd5614-96e9-4562-a1fd-21bab239907c.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Biased Technological Progress, Factor Price Distortion And Factor Allocating Efficiency in China","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Biased Technological Progress, Factor Price Distortions, Factor Allocating Efficiency","lastPublishedDoi":"10.21203/rs.3.rs-3855225/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-3855225/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper constructs a two-regime model with factor flowing, studies the long-term factor allocating structure when there exists differences in biased technological progress between regions, and analyzed the influence of factor price distortion as an endogenous obstacle on factor allocating efficiency. 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