Research On International Trade,Human Capital Accumulation And Labor Productivity Change

In economic research,the residuals that cannot be explained by production factors in economic growth are generally called total factor productivity(TFP).The larger the residuals,the higher the productivity is considered.However,from the perspective of residuals,the larger the residuals are,the less able they are to explain the source of economic growth.Therefore,in view of the differences in the definition and understanding of total factor productivity and the dependence of its estimation on the specific form of production function,labor productivity has become the core indicator to measure the economic growth of a country or region.Fundamentally,the improvement of labor productivity depends on the accumulation of human capital.The reason why the accumulation of human capital can promote economic growth mainly stems from the fact that the accumulation of human capital enhances the knowledge,skills,work proficiency and health level of laborers,fundamentally promotes the improvement of the quality of laborers and thus improves labor productivity.The stock of human capital accumulation depends on the flow of human capital investment,which is a rational way for economic subjects to allocate resources.Human capital investment has both income and opportunity cost.Rational economic subjects will weigh the cost and benefit of human capital investment under the cost-benefit analysis paradigm.Under the condition of opening,international trade and the accumulation of human capital will have mutually reinforcing effects,mainly displays in three aspects: first,the ministry of international trade as a way of resource allocation in across borders,will affect the family of human capital investment decision,to encourage families to invest in human capital in configuration,this is without a doubt theoretical conclusions;Second,no matter it is the active technological innovation brought by the effect of international trade competition or the passive absorption of the international technological frontier,it will promote the accumulation of human capital.Third,the accumulation of human capital will change the country’s comparative advantage and further affect international trade.Therefore,under the condition of opening,international trade and human capital accumulation will reinforce each other and jointly affect labor productivity.Since the reform and opening 40 years ago,China’s international trade has been expanding.Meanwhile,the growth of China’s labor productivity has become an important driving force for China’s economy to achieve sustained,steady and medium-high growth.However,by observing China’s labor productivity in recent years,we can find two problems that cannot be ignored:Firstly,look from the international horizontal comparison,although our country’s labor productivity of the fastest growing,but our country labor productivity level in 2015 only 40% of the world’s average,as the world’s second largest economy in our country and the world’s largest economy,compared to the United States is huge gap,our country’s labor productivity is only 7.4% of that in the United States.Secondly,from the longitudinal comparison of China’s labor productivity,although China’s labor productivity has achieved a long period of growth,the growth rate of China’s labor productivity shows a slowing trend after reaching the peak of 16.9736% in 2007.In 2015,the growth rate has dropped to 5.25185%,only a little more than 30% of that in 2007.Although it rebounded and rebounded upward in 2016,it was less than 10% and remained in the growth channel of 5%-10%,which was in sharp contrast to the sustained growth rate of more than 10% from 2003 to 2008.The above two questions reveal the following characteristic facts:Firstly,the absolute level of China’s labor productivity is not high at the current stage.China’s labor productivity is still at a low level at this stage,and there is still great potential and space for improvement.Objectively,a higher growth rate of labor productivity is needed to improve the absolute level of China’s labor productivity.Secondly,in recent years,the growth rate of China’s labor productivity has continued to decline,showing a downward trend,indicating that China’s labor productivity growth shows a trend of too fast weakening,which is a very noteworthy problem.If our country’s labor productivity is not high absolutely,this itself is not a too serious problem in the long run.Because higher labor productivity growth can be relied on to catch up and surpass,and finally converge to the level of labor productivity in developed countries.However,China’s labor productivity growth rate is slowing down and the trend of decline,is a very noteworthy problem.A lower,downward growth rate means it will take longer for China’s labor productivity to catch up with that of developed countries,and it will take longer for China to achieve its economic growth target.If the growth rate of labor productivity drops to a stagnant level or negative,the problem will be more serious,which means that China will fall into the trap of low-level development.Therefore,to deeply study how the impact of international trade interacts with the accumulation of human capital under the condition of opening and how it affects the change of China’s labor productivity is a theoretical and practical problem worth studying.The main research objective of this study is to deeply study how international trade and human capital accumulation interact and reinforce each other under the condition of openness,and jointly influence the direction and influence of labor productivity.Based on the results of this empirical analysis,in order to curb the declining trend of China’s labor productivity,to put forward countermeasures to constantly improve China’s labor productivity to provide a theoretical basis,to realize China’s transformation from a trading power to a trading power,to realize China’s transformation from a population power to a population power.In order to achieve the above research objectives,the main steps of this study are carried out in the following process:Firstly,the interaction between international trade and human capital accumulation is systematically sorted out,to jointly influence the theoretical and empirical analysis literature of labor productivity,providing theoretical clues and empirical analysis modeling basis for the subsequent empirical analysis of this study.Secondly,in terms of technology,the interaction between international trade and human capital accumulation is introduced into the empirical analysis to empirically test the direction and intensity of the mutual interaction between China’s international trade and human capital accumulation on China’s labor productivity.Thirdly,in terms of the structural arrangement,considering the unbalanced characteristics of China’s economic development,based on the overall empirical analysis of China,the empirical analysis of China’s regional and inter-industry international trade and human capital accumulation interaction impact labor productivity changes,and comparative analysis.Fourthly,based on empirical analysis results,relevant policy suggestions on international trade and human capital accumulation are put forward to realize the stable growth of China’s labor productivity.according to the empirical results of this research from the overall level of China’s national and international trade,human capital accumulation,international trade,and human capital accumulation coefficient in front of the three significant interaction item is positive,that China’s international trade and human capital not only their own labor productivity growth in China has played a positive role in promoting,and interactive reinforcement,promoted the growth of the overall Labour productivity in our country.However,from the perspective of cross-region,only the interaction term in the eastern region is significantly positive.From the perspective of industry,only the front coefficient of the interaction term of manufacturing industry is significantly positive.This shows that only in the eastern region of China and the manufacturing industry can international trade and human capital accumulation reinforce each other and jointly promote the growth of labor productivity.However,in the central and western regions,agriculture and non-manufacturing industries,there is no interaction between international trade and human capital accumulation,which promotes the growth of labor productivity.The possible reasons lie in that,on the one hand,the human capital stock level in central and western regions,agriculture and non-manufacturing industries is too low,which not only leads to the lack of active innovation ability,but also leads to the limited ability of passively absorbing international technology frontier.On the other hand,it may also result from the fact that the central and western regions,as well as agricultural and non-manufacturing industries,are not only less open to the outside world,but also have an unoptimized trade structure,so they cannot gain gains in labor productivity from international trade.Therefore,the corresponding policy implications include: first,measures must be taken to improve the level of human capital accumulation in central and western China,agriculture and non-manufacturing industries;Second,we must further open up the central and western regions and the agricultural and non-manufacturing industries.Third,the trade structure of the central and western regions,agriculture and non-manufacturing industries must be further optimized.Carry out the three policy orientation,to realize,in the western region,agricultural areas of central China and non-manufacturing industry of international trade and the benign interaction cycle between human capital accumulation,to realize our country from the trading power to trade intensity,from the most populous country to people power,promote steady growth of our country’s labor productivity.The possible innovations of this study are shown in four aspects:Firstly,this study put the international trade and human capital accumulation effect on labor productivity into a unified analysis framework,in the perspective of international trade to interact with human capital accumulation,deeply studies the interaction between international trade and human capital accumulation,the mutual influence mechanism of labor productivity change,and has carried on the empirical test.Secondly,at the technical level,the interaction between international trade and human capital accumulation is introduced in the empirical analysis to test the interaction between international trade and human capital accumulation,and then the direction and intensity of the impact on China’s labor productivity changes.Thirdly,different from previous studies that only unilaterally studied the impact of international trade on human capital accumulation,this study focuses more on the effectiveness of international trade on human capital accumulation,that is,this study focuses on the goal of international trade on human capital accumulation--labor productivity.Because the accumulation of human capital is never the goal of an economic entity,but the improvement of labor productivity.Fourthly,this study not only examines the relationship between China’s overall level of international trade and labor productivity,but also conducts empirical analysis and comparative analysis at the regional and industrial levels.At the same time,should realize soberly,this article also has many defects: the first,have a variety of ways to measure of labor productivity,this study using only the author thinks that the reasonable overall labour productivity as the agent of productivity index,has carried on the empirical test,and no empirical test for other forms of labor productivity;the second,as for the measurement method of human capital,this study only selects the measurement method that I think is reasonable,but does not use other methods;the third,in this study,the econometric equations of explanatory variables and explained variables only set a linear relationship without considering the possible nonlinear relationship between variables.The above deficiencies will be the future research direction of this study,which will be further improved in the future research.