Prohibition of factor market exchanges and technological choice in Chinese agriculture
构建了一个土地和劳动力市场交换被禁止的经济中的技术选择模型,并利用中国拖拉机需求、使用量和化肥数据检验了理论假设,发现相对要素稀缺性对技术选择的影响与市场经济的诱导技术变革假说一致。
This article constructs a model of technological choice in an economy where market exchanges in land and labour are prohibited. Empirical data on demand for tractors, tractor usage and chemical fertilisers in China are employed to test several hypotheses derived from the theoretical model. The theory implies that the impact of relative factor scarcity on the pattern of technological choice in such an economy is similar to that in a market economy as postulated by the Hicks‐Ruttan‐Hayami‐Binswanger hypothesis of induced technological change. The empirical evidence is found to be consistent with the implications of the model.