Song Donglin,a Wang Linhui b and Dong Zhiqing c

　　a Jilin University of Finance and Economics

　　b School of Economics, Northeast Normal University

　　c Business School, Jilin University

　　Abstract:This paper classifies capital into structure capital and equipment capital and uses the endogenous economic growth model to illustrate the role of capital-embodied technological change in economic growth. In addition, it adopts the capital quality index to adjust equipment capital stocks in order to examine the contribution to economic growth of capitalembodied technological change after adjusting for current capital service efficiency. The results show that embodied technological change (ETC) in equipment capital has an average annual growth rate of 4.78 percent, accounting for 10.6 percent of economic growth and 14.8 percent of the total capital contribution. The contribution of technological change varies with development stage and the contribution of different types of technological change varies. Compared with the 1980s, the period starting from the 1990s has seen a steady fall in the contribution of capital-embodied technological change, and a V-shaped evolution in the contribution of neutral technological change (NTC), with the fall being larger than the rise.

　　Keywords: equipment capital, capital-embodied technological change, capital service efficiency