Study On The Relationship Between Remuneration And Productivity In Guangdong Province

Since the beginning of the new century, especially after the accession to the WTO, Chinahas made tremendous economic and social achievements, constantly improving the socialproductive forces and growing its comprehensive national strength. In2010, Chinaovertook Japan in terms of gross domestic product as the world’s second-largest economy.Unlike the fast speed of economic development, the reform of income distribution systemin China made slow progress, resulting that labour remuneration rates are continuing todecline. On the situation in Guangdong Province, the rate dropped from1979to2010by16.04percents, and during the same period, labor productivity was growing at a rate of10per cent a year. Improving the remuneration of workers, and reforming the unreasonableincome distribution system, become the current important tasks faced by the party andState.Paying an appropriate amount of labor remuneration so that the majority of the people canfully enjoy the fruits of economic development, is our party’s ruling idea, which not onlywould stimulate the enthusiasm of the majority, but also can be conducive to stability in thecountry, conducive to the construction of a harmonious society. However, high laborremuneration will increase the company’s labor costs to some extent, and at the same timeburden the current severe employment situation. Therefore, study on the effects of Laborremuneration and other factors of production, and exploring the reasonable remunerationlevel are necessary.The study is on the position to explore the relationship between productivity and laborremuneration. On the basis of retracing the relevant research literature, the paper analyzesthe current status of remuneration and the efficiency of production and studies therelationship among different industries with the input-output table in Guangdong Province.using Cointegration and error correction model to study the relationship of long and shortterm equilibrium between labor remuneration and labor productivity in GuangdongProvince, and further analyzing of the impact direction between labor compensation andproductivity, we found that reciprocal causation relationship exists between the two. Takinginto account the wage system and the change of industrial structure in Guangdong Provincein recent years, the study explored the relationship between remuneration and productivityby stages, and results showed that in recent years, labor compensation influencing production efficiency is increasing in Guangdong. Finally, the study made some relevantpolicy recommendations on the reform of income distribution and industry development ofGuangdong province.