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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 labor‐saving 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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  • Fan, Shenggen & Ruttan, Vernon W., 1992. "Induced technical change in centrally planned economies," Agricultural Economics, Blackwell, vol. 6(4), pages 301-314, April.
    • Handle: RePEc:eee:agecon:v:6:y:1992:i:4:p:301-314
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    1. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
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    6. Hayami, Yujiro & Ruttan, V W, 1970. "Factor Prices and Technical Change in Agricultural Development: The United States and Japan, 1880-1960," Journal of Political Economy, University of Chicago Press, vol. 78(5), pages 1115-1141, Sept.-Oct.
    7. 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.
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    Cited by:

    1. Fan, Shenggen, 1997. "Production and productivity growth in Chinese agriculture: new measurement and evidence," Food Policy, Elsevier, vol. 22(3), pages 213-228, June.
    2. Vu, Linh Hoang, 2012. "Vietnam’s Agricultural Productivity: A Malmquist Index Approach," MPRA Paper 94800, University Library of Munich, Germany.
    3. 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.
    4. Shenggen Fan, 2020. "Reflections of Food Policy Evolution over the Last Three Decades," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(3), pages 380-394, September.

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