Manufacturing Growth and Local Multipliers in China

Ting Wang and Areendam Chanda

Departmental Working Papers from Department of Economics, Louisiana State University

Abstract: We investigate the impact of manufacturing employment growth on the non-tradable sector for prefecture-level cities in China. Using the 2000 and 2010 Censuses of Population, we apply the shift-share approach to isolate the exogenous change of employment growth in manufacturing. We find that adding ten manufacturing jobs creates 3.4 additional jobs in the non-tradable sector. We also show that the ef- fect is heterogeneous along a number of dimensions. More specifically, new jobs in high-technology manufacturing is responsible for the entire effect with low-tech manufacturing showing no significant effect. Among the non-tradable industries, the effect is largest for wholesale, retail, and catering with no effects on utilities and construction. We find that the effect is also geographically heterogeneous, with the multiplier being greater for inland provinces.

Date: 2016-02
New Economics Papers: this item is included in nep-cna, nep-geo, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.lsu.edu/business/economics/files/workingpapers/pap16_02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lsu:lsuwpp:2016-02

Access Statistics for this paper

More papers in Departmental Working Papers from Department of Economics, Louisiana State University Contact information at EDIRC.
Bibliographic data for series maintained by ().