We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Technical Change, Exports, and Employment Growth in China: A Structural Decomposition Analysis

Technical Change, Exports, and Employment Growth in China: A Structural Decomposition Analysis
Date:
28 February 2019
Authors:
Doan Thi Thanh Ha, Trinh Quang Long
Tags:
Labour and Migration

Print Article:

This paper analyses the sources of employment growth and assesses the contribution of exports to job creation in China. To do so, we utilise an input–output table to decompose employment growth into contributions from technical change, labour productivity, domestic final demand, and exports of domestically produced output. Our main data source is the annual input–output data from the China Industrial Productivity Database covering 1981–2010, of which employment figures have been adjusted to account for serious structural breaks observed in official statistics. The input–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 fourfold. 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 labour 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, labour productivity accelerated in all sectors, led by manufacturing. Last, most technical upgrading occurs in manufacturing, while agriculture experiences increased technical upgrading through the decline in labour usage.

ERIA-DP-2018-09

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

Energy, Economic impact, Fossil Power Plants, ASEAN
4 March 2024
Editor(s)/Author(s): Ichiro Kutani, Yoichi Namba, Han Phoumin
Addressing climate change necessitates a prompt reduction in fossil[...]
Online Public Service, Asia, Digital Economy
4 March 2024
Editor(s)/Author(s): Fukunari Kimura, Lurong Chen
ISBN : 978-602-5460-55-5 (under review Chief Economist) The implications of[...]