Research On Employment Effect Of China’s Export Trade In Value Added

As the world’s most populous country, the employment problem is always the most concern between China practice departments and academic circles, especially when economic development turns into a new normal. Downward pressure on the economy and the transformation of industrial structure, the employment situation China is facing is more severe. By the end of 2014, the registered urban unemployment and surplus labor force in rural areas were as high as 16.08 million and 130 million, to achieve the objective of full employment, the govement still shoulders heavy responsibilities. Since the reform and opening-up, with the rapid development of China’s export trade, China’s domestic employment structure occurred significant changes, mainly when the relative demand for high skilled labor will continue to rise, and the relative demand for low skilled labor tends to decline, namely the employment structure is more and more high level (Dong Bo Tang,2011). As a big developing country, China has a relative abundance of low skilled labor. In accordance with the traditional international trade theory of pre judgment, trade openness will make the less skilled labor employment demand tends to rise, but in reality, relative to high skilled labor, employment status of low skilled labor in China did not get improved in the process of export trade expansion, which is clearly contrary to traditional international trade theory of prejudgment. So, how does the export trade influence Chinese employment structure? The transformation and upgrading of existing trade pattern can improve the employment structure of China and support export trade structure? The problem does make us puzzled. At the same time, in the face of fierce international competition caused by trade liberalization, China manufacturing employment enterprises continue to strengthen the strength of employees. Then under the background of labor shortage intensified, in the face of fierce international competition caused by trade openness, Chinese manufacturing enterprises take what kind of the employment behavior to respond, namely open trade how to affect the number of labor and labor intensity of the Chinese manufacturing industry, obviously, the answer can help us have a deeper understanding of trade openness which affects China manufacturing industry labor market for the internal mechanism, and provide policy basis for China how to better play a positive role in expanding employment and increasing benefits of foreign trade.Since the 1990s, with the changing form of international trade gradually from trade in goods to service trade transformation, the global value chain and global production networks dominated by Multi-National Corporation are booming. The rise of the global value chain puts forward new challenges to the scale of international trade and gains from trade accounting, the hypothesis of the traditional method of accounting is all of the production activities in products all are at home and only use domestic inputs, however, with the increasing of cross-border division of labor and the extent of use of foreign investment, this assumption is no longer valid. Under the background of the global value chains specialization, the value of commodities for the caliber of the traditional customs statistics are difficult to accurately reflect the true scale of a country’s export trade. Therefore, to build a new mode adapting to the division of global trade value accounting framework is getting more and more popular. The successful preparation of the International Input-Output table, makes it possible to more accurately measure the employment effect of export trade by means of the trade data.In view of this, this article firstly interprets the employment effect of export trade in value added in-depth from the theoretical level, and then gives an accurate analysis from the empirical level. In order to make the analysis more comprehensive system, we were from the three dimensions of the employment quantity, employment structure and strength to measure the employment effect of export trade in value added. We can make conclusions as follows:1. Comparing to exports in value added, grossexports under conventional statistical methods generally overestimate the true export scale and interests of the Chinese various industries. Both from a static or from the comparative static perspective, the status of the industry in global value chains and global production networks are significant differences, but from a dynamic perspective, the rate of exports in value added and the status of the global value chains for each industry show a similar change trend.2. Overall, marginal boost of export in value added to total employment of various industries tended to decline from 2000 to 2009, while the amount of total employment of most sectors tended to increase. From sub-skilled employment perspective, the contribution of export in value added to employment growth of low-skilled labor force is biggest, followed by middle-skilled workers, highly skilled workforce is weakest. Although the stimulating effect of export in value added to Chinese high-skilled labor force is relatively weak, that has a strong upward trend. Further investigating factors that influence employment effects of export in value added, the results show:export expansion of the final goods and intermediate goods is the main driving force of increase in employment amount of export in value added, while variation of labor input-output coefficient is the main factor inhibiting to pull employment amount of export in value added.3.Overall, export in value added contribute to optimization and upgrading the home and exported employment structure,from Sub-industry perspective, the optimization role of exports in value added to exported and domestic employment structure is more highlight for capital and technology-intensive industrial, the optimization role of exports in value added to exported employment structure is relatively strong for each services industries, the optimization role of exports in value added to exported employment structure is relatively weak. Joining WTO increases the optimization role of exports in value added to domestic employment structure, and the international financial crisis began in 2008 have the inhibitory effect, it must be noted that these conclusions have significant industry heterogeneity.4.The research result finds that with labor shortages becoming increasingly prominent, the fierce competition caused by trade openness makes Chinese manufacturing enterprises have to adopt the measure of "enhancing labor intensity, reducing the labor force", and the implementation of "Labor Contract Law" will significantly inhibit the adverse effect of trade openness on labor rights and interests, which means that the improvement of the labor market supervision’s environment is helpful to improve the workers’ rights and interests. In addition, the reestimation based on gross trade data and added value trade data finds that the research results based on gross trade data and added value trade data is significantly different, it is more reasonable and necessary to use added value trade data as the sample data.