Research On The Impact Of China’s Import Of Intermediate Goods And Capital Goods On The Labor Productivity In Manufacturing Industry

Since the reform and opening up China’s integration into the world economiccontinues to deepen, the rapid increase in intermediate goods and capital goodsimports in absolute terms occupy a major position in China’s import trade. Over thepast20years, China’s manufacturing industry has experienced tremendous change,the production level is getting higher and higher,industrial scale has expanded rapidlyand labor productivity enhances significantly. Research in the relationship ofintermediate goods and capital goods imports and trade structure with laborproductivity is a very significant thing, making the study of both relationships becomevery necessary. First this paper analyzes the mechanism how intermediate goods andcapital goods imports both influent the manufacturing labor productivity, at theoreticalanalysis, intermediate goods imports impact is divided into intermediate goodsinput-output effect, vertical specialization effect, and competition effect; imports ofcapital goods impact is divided into the international R&D capital owned tradingoverflow effect and gains from trade effect based on Mazumdar’s hypothesis.In the Analysis section this paper first focused on changes of intermediate goods andcapital goods imports in the decade-scale,and then found that import structure alsohad a significant adjustment, next began a detailed analysis of the currentdevelopment of China’s manufacturing labor productivity,Alphaand eventually founda consistent relationship exist between changes in productivity between the differenttypes of industry in China and changes in the structure of imports.In the last part by empirical test wo can get following conclusions: import ofintermediate goods and capital goods is a significantly reason contributed to theenhancement of industry labor productivity. And also by other empirical tests we canget that：import of capital goods from developed countries is more useful forimprovement of labor productivity, this shift is not conducive to the enhancement ofthe industry labor productivity;imports of intermediate goods relative to imports ofcapital goods have a greater impact on labor productivity, the effect seems to be moreobvious, and finally on the basis of the empirical results gave some correspondingpolicy recommendations to enhancethe competitiveness of the manufacturing sector.