Abstract:

This paper discuss the influence of capital-labor substitution elasticity and biased technological progress on agricultural economic growth in theory,and the result from the estimate of the factor substitution elasticity and biased technological progress index of 28 provinces in 1978-2013 show that the value of the factor substitution elasticity is more than 1, and the technological progress is toward capital. The result from using the panel data model to test the effect of factor substitution elasticity and biased technological progress on agricultural economic growth show that Capital-labor substitution elasticity and biased technological progress index has a positive correlation with the agricultural economic growth rate, that is they can promote the agricultural economic growth.The result is consistent with the theory, that is, the elasticity of factor substitution can promote agricultural economic growth, and the capital biased technological progress tends to promote agricultural economic growth in the case of factor substitution elasticity is greater than 1.