The Information Technology Developing Path and the Influence Effect on the Capital-Labor Ratio in China

In the production, The technology in some stage always relates to the ratio of the two factors capital and labor. The degree of the technology soaking up the capital and labor will direct influence the economy increase. It also used to reflect and measure a kind of technology advancement. The capital-labor ratio (K/L) can be used to judge a kind of technology which is a capital - denseness technology or a labor - denseness technology. The information technology has wide application and penetrability, in the different technology developing period, the information technology has different soaking degree to the capital and labor, Its innovation's forming and spreading have different influence on the capital-labor ratio (K/L). Here first we'll do some theory analyses to the capital-labor ratio (K/L), i.e to find out their effect rules. And then we'll do some demonstration by using the real example and further analyses the influence effect of the information technology on the capital-labor ratio (K/L) with the mathematics, and find out the conclusion. In the lower informationization period, The information technology is a capital - denseness technology. During the higher informationization period, The information technology is a labor - denseness technology. The conclusion will be redound to the harmony develop for the IT industry and the labor market. Finally offer a series of the suggestions about information technology.