Research On The Impact Of China’s Import Of Intermediate Products On The Labor Productivity In Manufacturing Industry

With the development of China’s processing trade, intermediate goods imports expanded rapidly, and have become the subject in imports. China’s manufacturing industry has great changes with the growth of imports of intermediate goods. For example, rapid growth of output, labor productivity improved significantly .As a production, the quality and the structure of intermediate goods are closed to the manufacturing sector of importing country. If the import of intermediate goods is in good condition, the manufacturing industry will have high efficiency, high output, and good prospects for development. If the import of intermediate goods is not good, there will be many problems, such as manufacturing development stalled, low returns, high pollution and consumption. Obviously, to research the relationships between the import of intermediate products and the productivity of manufacturing labor is very important.First, the paper analyzes the impact mechanism between the import of intermediate goods and the productivity of manufacturing labor. On the one hand is a static effect. Imports of intermediate goods would lead to technological progress management improvement, management progress, Proficiency increased of labors. On the other hand is a dynamic effect. Imports of intermediate goods would lead to Industrial upgrading .Workers change their jobs from low labor productivity sectors to high labor productivity sectors. Second, we examined data from 1998-2008 and described the changes of intermediate goods: Not only imports have risen nearly eight times but the import structure has been adjusted. Primary goods and parts increased in the proportion of imports and processed goods scaled down. Metal smelting and processing of manufacturing products, machinery and equipment manufacturing, communications equipment and computer industries developed rapidly. Intermediate products are in great demand in these industries; Productivity and GDP are among the forefront. They are the leaders of China’s manufacturing industry. Furthermore, according to SITC classification, we divided the intermediate goods into primary products, labor-intensive products and technology-intensive products. We found that the labors transfer from the other two departments to technology-intensive departments in recent years. We cloud even say that technology-intensive industries are the only departments to absorb labor after 2005. To prove whether there exists a correlation between imports of intermediate products and the labor productivity of manufacturing industry, the paper makes empirical analysis on the long-term relationship between the labor productivity of manufacturing industry and the import data of intermediate product, in term of unit root test, co-integration test and Granger causation test. The results show that the import of intermediate product is the Granger-causation of the labor productivity of manufacturing industry. More precisely, the labor productivity would increase by 6.74% along with 1% increasing of the import of intermediate product. As a result, to affect the labor productivity of manufacturing industry, it is feasible to regulate and control the import of intermediate product. Things we have to do is to increase the import of the intermediate product and to improve the import structure.