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The Migration of Surplus Labor and Technology Progress in China's Agricultural Sector——The Theoretical Mechanism Based on Ranis-Fei Model and Micro Evidence from Eight Rural Villages in West China

Chen Kaijun1,He Caiyin2,Zhang Yongli1(1.College of Economics and Management,Northwest Normal University,Lanzhou 730070,China;2.College of Economics,Northwest University for Nationalities,Lanzhou 730070,China)  
The paper establishes an augmented Ranis-Fei model to analyze the influence of the migration of surplus labor on technology progress in China's agricultural sector and its theoretical mechanism.From which this paper concludes that the migration of agricultural surplus labor will lead the substitution effect between capital and labor force,then the accumulated capital-biased technology innovation in agriculture sector will occur gradually.Production in agriculture sector will be prompted by this effect in the short run.In the long run,this effect will lead the process of capital deepening in agriculture sector.In order to examine this theoretical mechanism,this paper establishes a stochastic frontier production function.Using the micro farmer family investigation data from eight rural villages in West China,the mechanism is reflected by the regression result perfectly.
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