The Influence Of Trade Of Private Section To The Transfer Of Agricultural Surplus Labor

Before the reform and open policy, the carrying out of China's catch-up-and-surpass strategy and its endogenous resources allocation system based on household register management, made factor market segmentation, price distortion and a lot of surplus labor force in the agriculture sector. After the reform and open policy, the government carried out the household contract responsibility system, which improving the agricultural efficiency, making the contradiction of peasant and plough worse, simultaneously, making the problem of the agricultural surplus labor force highlight increasingly. Meanwhile, With the factor endowments of scarcity of capital and surplus labor, private section which have the viability produce Labor-intensive products and exporting these products. Thus, an emerging labor market is growing and prospering with rural labor and private enterprises being the supply and demand sides respectively. In this paper, we concentrate on the effects of the trade of private section to agricultural surplus labor.This article has analyzed this question from the theory and the empirical analysis tw7o angles. Firstly, from the theoretical point of view, this paper expands the two sector model in the closed economy to the four sector open economy model including foreign sector, the agricultural sector, the state-owned non-agricultural sector and the private non-agricultural sector. Among them, state-owned non-agricultural sector facing the labor market segmentation bear a heavy burden of the policy and use labor-saving technology, the main labor supply is urban residents, while the private non-agricultural sector using comparative advantages of the development strategy through accelerate the accumulation of capital and strengthen innovation strength, enhance the use of innovative labor bias level, absorb the agricultural surplus labor into the production of labor-intensive products. When domestic sector can't provide big enough market for the high-speed growth of labor-intensive products, bringing the production capacity of private non-agricultural sector into play depend on sturdy need of foreign sector. On this basis, putting the logic mechanism forward, which is foreign trade of private non-agricultural sector promotes the Labor surplus transfer between Industries. Export trade of private non-agricultural sector will accelerate itself capital accumulation; import trade of private non-agricultural sector will strengthen the ability of technological change by importing appropriate technique and management methods, then strengthening the absorbing ability of surplus labor. Secondly, in order to prove this logic mechanism, this paper makes use of the absorbed surplus labor equation of the industrial sector and the short-term and long-term technique path analysis of private non-agricultural sector. Thirdly, inspect logic mechanism with interaction model using the provinces and regions panel data. The regress of Provinces panel data shows that on the foundation of the average value of the exporting and importing, innovation intensity and the labor bias of innovation have a positive effect on the transfer of surplus labor, but capital accumulation have a positive effect or negative effect at different time, it is difficult to describe the specific effect. The regress of region panel data shows that the effect of foreign trade of private non-agricultural sector to the transfer of surplus labor dies down gradually from east to west. In the end, we conclude the whole paper, and give the political suggestion.