Biased Technological Progress, Factor Price Distribution, and Overcapacity: A Case from China
Table 1
Selection and calculation methods of control variables.
Category
Variable
Selection reason
Calculation method
Production
Input (factor inputs)
The production capacity of the production side increases as the scale of capital and labor input expands
Capital input scale/labor input scale
Demand
Profit (main business profits)
Sales revenue and profits represent market demand and are important indicators for the production side to expand or reduce the production capacity
Operating profit/main business income
Export (external demand)
The proportion of exports represents international market demand and is an important indicator for the production side to expand or reduce the production capacity
Industrial output value/(industrial value-added − total industrial labor income)
Industry competition
Compete (industry competition intensity)
Industry competition affects the production capacity by influencing resource allocation and production efficiency of the production side
Total industrial output value/(industrial value-added − total industrial labor income)
Government intervention
Government (national capital to owner’s equity)
Government policies and regulations affect the behavior of the production side through national policies, thereby influencing the production capacity
