Study On The Influence Of Labor Costs On Wood-Industry’s International Competitiveness

Relying on the comparative advantage of cheap labor costs and other factors,China become the world’s largest wood-producing and exporting countries ofplywood, processed wood flooring and other, conformating a strong internationalmarket competitiveness, which has an important contribution to the national economicdevelopment and creating job. As a labor-intensive industry, wood processing industry,rising labor costs affect the international competitiveness of its extent may be stronger.Therefore, in order to better respond to the challenges of rising labor costs,consolidate and enhance China’s timber industry’s international competitiveness, laborcosts need to accurately measure the changes in the timber industry and the impact ofinternational competitiveness.Firstly, under the guidance of resource endowment theory,"Leontief paradox","Kravis Problems" and "Calder paradox," labor efficiency says, human capital says,the technology gap says,this paper analyzes the impact mechanism of labor costs onthe international competitiveness of China’s timber industry, then use the relevantstatistical yearbook or a database to collect data, the use of lead regression model,empirical investigation nominal remuneration, labor productivity, unit labor costs,physical capital intensity, technological innovation and human capital strength on theinternational competitiveness of China’s timber industry, the impact of the direction ofits strength; Finally, based on empirical analysis results, the Chinese timber industrycope with rising labor costs and policy implications.The main conclusion of the study include that: firstly, the labor productivity grewfaster than labor compensation in the timber processing industry, resulting the actuallabor cost advantage has not diminished in1992-2011years; secondly, workerscompensation, labor productivity and technological innovation has a significant positiveeffect on the China’s timber processing industry international competitiveness; Thirdly,at the circumstances of rising labor remuneration of workers being unavoidable, China’stimber processing industry must settle the threats of rising rapidly labor costs in futureby improving labor productivity and technological innovation.