Technical Change in Chinese State Industry: A New Approach

In this paper, an economically consistent framework which yields dual measures of technical change is developed. The major advantages of the proposed approach over previous ones are that (i) the restrictive assumption of perfect competition is relaxed; (ii) it is no longer necessary to use time to i...

Full description

Saved in:
Bibliographic Details
Published in:Journal of Comparative Economics 1995-12, Vol.21 (3), p.308-325
Main Author: Wan, Guang H.
Format: Article
Language:English
Subjects:
China
Econometrics
Economic models
Public enterprises
Technological change
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this paper, an economically consistent framework which yields dual measures of technical change is developed. The major advantages of the proposed approach over previous ones are that (i) the restrictive assumption of perfect competition is relaxed; (ii) it is no longer necessary to use time to index technology levels; (iii) a parametric specification of the production or cost function is not needed; and (iv) no assumptions on the character of technical progress are required. The conventional assumption of constant returns to scale is, however, retained. Applications of the proposed methodology using Solow's and Chinese state industry data yield results that broadly conform with expectations.
ISSN:0147-5967
1095-7227
DOI:10.1006/jcec.1995.0003