Impact of China’s export on the employment structure in the destinations’ enterprises: based on the sample of enterprises in the export destinations

WEI Hao1 ZHANG Yupeng1 LIAN Huijun1

(1.Business School, Beijing Normal University)

【Abstract】Using data of more than 40,000 enterprises in 68 export destinations during the period from 2007 to 2016, this paper examines the impact of China’s export on the employment structure of enterprises in export destinations. The results are as follows. (1) China’s export reduces the employment size of the enterprises in export destinations, but it promotes the employment structure upgrading. (2) China’s export plays a greater role in optimizing the employment structure of enterprises in low- and middle-income countries, non-OECD countries and the countries away from the Belt and Road. Moreover, the effect is especially salient for the enterprises of smaller size and with no international quality certification. The export of intermediate goods has greater effects than that of capital goods or consumption goods. (3) From the perspective of enterprises’ innovations, independent innovations of enterprises in low- and middle-income countries have strengthened the optimization effect of China’s export on the employment structure. (4) The impact of export differs by countries, in which China’s case is special.

【Keywords】 China’s export; export destinations; employment structure in terms of skill; high-skilled labor;

【DOI】

【Funds】 the National Natural Science Foundation of China (71473020)

Download this article

(Translated by LI shushu)

    Footnote

    [1]. ① http://www.mofcom.gov.cn/article/ae/ag/201801/20180102704083.shtml [^Back]

    [2]. ② The calculation is based on the World Development Indicators database provided by the World Bank. [^Back]

    [3]. ① As the latest data provided by the Barro-Lee database about the per capita years of education are the data of the year of 2015, the 2016 data are estimated by the interpolation method. [^Back]

    [4]. ① In Model 5 and Model 6 of Table 1, the control variable about enterprise size is changed into the respondent’s answer about enterprise size, which is a categorical variable. The value of this variable is 1 for small enterprises, 2 for medium-sized enterprises and 3 for large enterprises. [^Back]

    [5]. ① In the World Bank’s Enterprise Surveys database, enterprises are classified in accordance with the number of employees (including regular employees and casual employees). The enterprises with five to 19 employees are small ones, those with 20 to 99 employees are medium-sized enterprises, and those with more than 100 employees are large enterprises. [^Back]

    References

    1. Liu, Y. & Zhang, M. Journal of International Trade (国际贸易问题), (7) (2017).

    2. Luo, C. & Zhang, J. Social Sciences in China (中国社会科学), (11) (2012).

    3. Tang, D. Economic Research Journal (经济研究), (8) (2012).

    4. Wei, H. & Li, X. Economic Perspectives (经济学动态), (4) (2017).

    5. Wei, H. et al. The Journal of World Economy (世界经济), (4) (2016).

    6. Wei, H. Journal of International Trade (国际贸易问题), (4) (2015).

    7. Acemoglu D. (2003), Patterns of Skill Premia. The Review of Economic Studies. 70 (2): 199–230.

    8. Álvarez R., Claro S. (2009), David Versus Goliath: The Impact of Chinese Competition on Developing Countries. World Development. 37 (3): 560–571.

    9. Amiti M., Dai M., Feenstra R. C., Romalis J. (2017), How Did China’s WTO Entry Affect U.S. Prices?. NBER Working Paper No. 23487.

    10. Autor D. H., Dorn D., Hanson G. H. (2013), The China Syndrome: Local Labor Market Effects of Import Competition in the United States. The American Economic Review. 103 (6): 2121–2168.

    11. Balsvik R., Jensen S., Salvanes K. G. (2015), Made in China, Sold in Norway: Local Labor Market Effects of An Import Shock. Journal of Public Economics. 127: 137–144.

    12. CrinòR. (2012), Imported Inputs and Skill Upgrading. Labour Economics. 19 (6): 957–969.

    13. Donoso V., Martín V., Minondo A. (2015), Do Differences in the Exposure to Chinese Imports Lead to Differences in Local Labour Market Outcomes? An Analysis for Spanish Provinces. Regional Studies. 49 (10): 1746–1764.

    14. Iacovone L., Rauch F., Winters L. A. (2013), Trade as an Engine of Creative Destruction: Mexican Experience with Chinese Competition. Journal of International Economics. 89 (2): 379–392.

    15. Kasahara H., Liang Y., Rodrigue J. (2016), Does Importing Intermediates Increase the Demand for Skilled Workers? Plant-level Evidence from Indonesia. Journal of International Economics. 102: 242–261.

    16. Mendez O. (2015), The Effect of Chinese Import Competition on Mexican Local Labor Markets. The North American Journal of Economics and Finance. 34: 364–380.

    17. McManus T. C., Schaur G. (2016), The Effects of Import Competition on Worker Health. Journal of International Economics. 102: 160–172.

    18. Mion G., Zhu L. (2013), Import Competition from and Offshoring to China: A Curse or Blessing for Firms?. Journal of International Economics. 89 (1): 202–215.

    19. Pierce J. R., Schott P. K. (2016), The Surprisingly Swift Decline of US Manufacturing Employment. American Economic Review. 106 (7): 1632–1662.

    20. Raveh O., Reshef A. (2016), Capital Imports Composition, Complementarities, and the Skill Premium in Developing Countries. Journal of Development Economics. 118 (8): 183–206.

    21. Rodriguez-Lopez A., Yu M. (2017), All-Around Table Liberalization and Firm-Level Employment: Theory and Evidence from China. CESifo Working Paper Series. No. 6710.

This Article

ISSN:1000-7881

CN: 11-1043/C

Vol , No. 01, Pages 16-32+126

February 2019

Downloads:0

Share
Article Outline

Abstract

  • 1 Introduction
  • 2 Econometric model and data description
  • 3 Empirical results and analysis
  • 4 Extended analysis
  • 5 Conclusion and policy suggestions
  • Footnote

    References