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Induced technical change in centrally planned economies

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  • Fan, Shenggen
  • Ruttan, Vernon W.

Abstract

It has generally been assumed that the inferences of the induced technical change model with respect to the direction of technical change could not be expected to hold for the centrally planned economies. In this paper we test three hypotheses generated from the induced technical change hypotheses against the experience of centrally planned economies: (a) if land becomes increasingly scarce new technology will be biased in a land-saving direction; (b) if labor becomes increasingly scarce new technology will be biased in a laborsaving direction; and (c) changes in the land-labor ratio have been induced by changes in relative factor endowments. The results suggest a bias toward mechanical and against biological technology regardless of factor endowments. This is consistent with the well known ideological or policy bias in a number of centrally planned economies toward a capital intensive development strategy.

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 6 (1992)
Issue (Month): 4 (April)
Pages: 301-314

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Handle: RePEc:eee:agecon:v:6:y:1992:i:4:p:301-314

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Web page: http://www.blackwell-synergy.com/loi/agec

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  1. Binswanger, Hans P., 1973. "The Measurement Of Technical Change Biases With Many Factors Of Production," Staff Papers 14205, University of Minnesota, Department of Applied Economics.
  2. Fan, Shenggen, 1990. "Effects Of Technological Change And Institutional Reform On Production Growth In Chinese Agriculture," Staff Papers 13454, University of Minnesota, Department of Applied Economics.
  3. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331 Elsevier.
  4. Wilkin, Jerzy, 1988. "The Induced Innovation Model of Agricultural Development and the Socialist Economic System," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 15(2/3), pages 211-20.
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Cited by:
  1. Shenggen Fan, 2000. "Technological change, technical and allocative efficiency in Chinese agriculture: the case of rice production in Jiangsu," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(1), pages 1-12.
  2. Fan, Shenggen, 1997. "Production and productivity growth in Chinese agriculture: new measurement and evidence," Food Policy, Elsevier, vol. 22(3), pages 213-228, June.

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