Technical Change, Exports, and Employment Growth in China: A Structural Decomposition Analysis*
Ha Doan and
Asian Economic Papers, 2019, vol. 18, issue 2, 28-46
This paper analyzes the sources of employment growth and assesses the contribution of exports to job creation in China. To do so, we utilize an inputâ€“output table to decompose employment growth into contributions from technical change, labor productivity, domestic final demand, and exports of domestically produced output. Our main data source is the annual inputâ€“output data from the China Industrial Productivity Database covering 1981â€“2010, of which employment figures have been adjusted to account for serious structural breaks observed in official statistics. The inputâ€“output framework allows us to explore both the direct impact of exports on employment within a given industry and the indirect impact through inter-industry transactions. Our major findings are four-fold. First, the increase in final demand, including both domestic demand and exports, is the main driver of employment growth in China. The strong growth in final demand offsets the decline in employment caused by enhanced labor productivity, especially during the 2000s. Second, the contribution of exports to job creation has increased significantly, especially in manufacturing and agriculture, following China's accession to the World Trade Organization. Third, labor productivity accelerated in all sectors, led by manufacturing. Last, most technical upgrading occurs in manufacturing, whereas agriculture experiences increased technical upgrading through the decline in labor usage.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to PDF is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tpr:asiaec:v:18:y:2019:i:2:p:28-46
Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=1535-3516
Access Statistics for this article
Asian Economic Papers is currently edited by Wing Thye Woo, Sung-Chun Jung, Fukunari Kimura and Ming Lu
More articles in Asian Economic Papers from MIT Press
Bibliographic data for series maintained by Ann Olson ().