Abstract
Based on the provincial panel data of Chinese 29 provinces of auto industry from 1993 to 2007, I studied the cause of factor intensity change of auto industry. I find that the relative price between capital and labor cannot affect factor intensity significantly; in different stages, the increase of per capita GDP and the decrease of percent of state-owned property will lead to industry capital labor ratio to rise; the increase of industrial concentration can promote capital labor ratio; the technical progress of Chinese auto industry is labor-saving, which can raise the capital labor ratio.
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