Effect Of International Trade On Employment In China

China's international trade has improved much and the employment scale has increased as well as the structure of employment has improved also, since the Reform and Open, especially entering into WTO in 2001.But the employment problem still restricts China's economic development. Based on the upgrading position of international trade in nation economy, this paper analyses the effect of international trade on China's employment in terms of opening, especially analyses the effect of international trade structure changing on China's employment evolving and the labor transfer from rural to city. The paper defines international trade structure in farm products and industrial products.Firstly, the paper analyses the effect mechanism of international trade on employment in the abstract, and theoretically analyses the relationship between international trade and employment. Secondly, the paper puts up the empirical analysis. On the one hand, the paper using time series data analyses the effect of product structure of international trade on the nation employment scale and structure changing by the method of Conintigration test, ECM and Granger casualty test. On the other hand, the paper using dynamic panel data gives the forth analysis on the relationship between international trade and employment by fixed estimation and GMM, for validating the results of time series analysis and explaining the effect degree of international trade on employment in areas of China.From analysis in theory and empiric, we get inspires as follows: first, the development of international trade and open degree of the economy are good for improving the employment. Second, the improvement of international trade structure is good for picking up the steps of rural labors transferring to the city, optimizing the structure of employment. Third, the effect of international trade on employment continuous exerting is based on economic growth and capital accumulation. Forth, it is good for resolving employment of rural and city in China to develop the international trade in the middle and the west in China. Fifth, it is necessary to release employment problem in the East by accelerating the economic development and capital accumulation, as well as adjusting industrial structure.At last, the paper puts forward some advices to improve the employment by developing the international trade. Firstly, optimize farm product export structure and increase high quality farm products import. Secondly, enlarge the industrial product trade scale, enhance the technique content of export industrial products, and selectively import industrial products. Thirdly, enlarge the trade open in the Middle and the West, expedite the development of high and new technology products and technique trade, then make trade in all of the areas is good for employment. Fourthly, optimize area structure of trade, enhance product structure of trade, and accelerate the order flows of labors in the areas and industries.