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The Influence of Labor Intensive Export on China's Economy Growth

Emmanuel Stober

No 3, Working Papers from Bucharest Academy of Economic Studies, Research Center in International Business and Economics (RCIBE)

Abstract: This paper examines the sources of China’s economic growth, emphasizing the role of factor endowment. After evaluating the determinants of gross domestic product growth, it goes further to decompose the total export with Cobb–Douglas production function, which revealed increasing return to scale of 0.75 for labor intensive exports and 0.31 capital intensive exports. Revealed comparative advantage results reported that labor intensive export exerts a major impact on China’s development. They claim that margins for these goods are large. Thus, a drop in export arising from decrease in labor intensive export will cause a gap in China’s gross domestic product.

Keywords: Factor endowment; GDP growth; Labor intensive export; Revealed Comparative Advantage; China’s economic development (search for similar items in EconPapers)
JEL-codes: F43 J48 O10 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2014-04
New Economics Papers: this item is included in nep-cna
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in CCREI Working Papers Series, April 2014

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