Abstract
This article uses the provincial panel data of large and medium-sized industrial enterprises in China in1999-2007, exploiting growth regression method, to empirically study the relationship between capital deepening, the heterogeneity of technological input and growth of labor productivity. The results showed that: capital deepening explains 50% of the growth in labor productivity; R&D not only directly raise labor productivity, but also through interaction with the level of capital deepening has contributed significantly to labor productivity growth.
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