An Empirical Analysis Of China’s Lewis Turning Point In The Labor-intensive Manufacturing Sector

Since the reform and opening up China’s rural surplus labors continuously havebeen transfering to the urban industrial sector. Improving efficiency of labor resourcesallocation had promoted the sustained economic growth. After China’s accessiond to theWTO in2001, the factor endowment and comparative advantage of China’s labor supplywere playd by the globalization of trade. The labor-intensive industry was rapidlydeveloped, meanwhile the degree of dependence on foreign trade increased year by yearand the labor demand increased continuously.The Lewis turning point, a concept named after the Nobel laureate Sir Arthur Lewis,is a turning point in labor surplus to shortage in the process of industrialization. When theeconomy arrived at the Lewis turning point, the dual economic of the developing countrywould enter the neo-classical economic system. At this stage the increase of labor incomewould have a profound impact on many economic factors, for example, economic growth,income distribution, industrial structure and comparative advantage."Laborer barren" phenomenon first appeared in the coastal area of Southeast Chinain2004, thereafter it also appeared in succession.in the inland area. Whether China, asthe most populous country in the world, already arrived at the Lewis turning point?In this paper, regression analysis of Cobb-Dauglas production function (from2001to2009) of China’s labor-intensive manufacturing industry (including13industries) hasgot the conclusion, in that China’s "Lewis turning point" has come. Based on the resultsof the empirical analysis author has put forward the policy suggestions.