Study On Mechanism Of Skill-Biased Economic Growth

Since the open and reform,China growth model,featured with "demographic dividend",and“power government”,created the China growth miracle,which made China GDP ranking the second in the world and manufacturing being"world factory" and industry structure transforming from agriculture to industry.When entering 21 century,especially American financial crisis in 2008,China growth model is being challenged.growth of export decreased dramatically,unemployment and labor cost increased sharply,down-going pressure of growth is increasing and transition trend of this model is distinct.Canonical growth theory emphasized the role of innovation and technology on growth,which indicated directions for government to promote growth,despotically the experience and theory of skill biased technological change in developed countries had reference value to the achievement of China growth transition.This paper studies the mechanism of skill biased economic growth in China,and explores the path of skill biased economic growth in China.The design of skill biased economic growth is based on two aspect:first,chapter 2 captured the experience of economic growth in developed countries and the difficulty of China economic growth,Second,chapter 3 measured the biased direction of economic growth in China.It shows that the direction of economic growth is biased unskilled labors other than skilled labors.Next,from open economy,labor market and institution,the paper explored the mechanism of skill biased economic growth in China.Chapter 4 generally captured mechanism of skill biased economic growth in China.Chapter 5 explored mechanism of skill biased growth from open economy.This chapter first analyzed the mechanism of open economy on skill biased growth,and then use model explained the effect of industry structure under open on skill biased growth,and final examined the result through data of time series from 1981 to 2012,panel data of 31 regions from 2000 to 2013,and trade data of industry from 2000 to 2010.In chapter 6,thepaper revealed that the regidify of skilled labors led to mis-allocation of skilled labors,and then using the OP covariance method and TFP dispersion method of Hsieh&Klenow,it measured the mis-allocation of skilled labors in industry and service sector,which showed that the distortion of skilled labors in service is more serious than that in industry.In chapter 7,the paper first reviewed the literature about how institution affect the innovation growth,and concluded that the China directed model is very important to the innovation growth.Then the paper compared the directed model of China to the liberal marketing model of USA,and showed the dispersion of reallocation of skilled labors and innovation growth,and then using 2*2 production model,the paper explained the effect of skilled labors and institution on innovation.Final,the panel data of 15 countries from 1990-2012 examined and supported the results.The paper concluded three points:China has not developed the skill biased growth;trade division under global value chain restricts the development of skill biased growth;the government intervention induces the misallocation and efficiency loss.the paper supply two suggestions for policy:one is to relax the regulation of government on labor market,the other is to supply good supporting institution for innovation and skill labors.The paper made a contribution by exploring the mechanism of skill biased growth in China from open economy,labor market and institution,which supplied some good idea for the enforcing of innovation-induced growth strategy.