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What determines the capital-labor ratio in production of commodities?

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What determines the capital-labor ratio in production of commodities?

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  1. Technological progress is an important determinant.

    Another important question is why the capital-labor ratio for the same commodity is different in different countries (farming of the same crop is more labor-intensive in China then in the U.S.). In the presence of perfect capital markets this should not happen (see link below).

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