| A rise in the minimum wage, which guarantees laborers’ remuneration, can not only improve the wages of the workers, but increase the labor costs of enterprises. Being in the critical period of transformation and upgrading, the problem of industrial upgrading becomes the focus of Chinese and foreign scholars. As a basic input in the process of industrial production and development, labor, whose increase will inevitably affect the industrial upgrading process. A rising labor costs has become one of the main factors affecting the development of the industrial operation, especially for the textile industry. Textile industry, which is one of the pillar industries in Chongqing, can increase employment. With the increasing labor costs, it is quite significant to upgrade textile enterprises. Under the circumstances, this paper, basing on review of the studies on related theories, which enlightens the author of facts about labor costs and the status quo of the textile industrial upgrading in Chongqing, employs quantitative analysis method, which demonstrates the impacts that a rising labor costs has on Chongqing textile industry, refines conclusion and puts forward the corresponding policy recommendations.To conduct research on labor costs affecting industrial upgrading is of theoretical significance and practical value. Refer to the relevant theories and research results, this paper constructs theoretical analysis framework of the labor costs influence on industry upgrading, sets up a comprehensive index to measure industrial upgrading, introduces other possible explanation variables, and uses empirical analysis method to study relationship between the two, which is conducive to further standardize the concept of industrial upgrading and straighten out the relationship between the labor cost and the industrial upgrading, and also serves as complementary to the existing theory. Furthermore, the research results of this paper can deepen the understanding of the status quo for the rising cost of labor, provide reference for the textile industry and other labor-intensive industries on managing labor relations, thus has a certain practical significance.This paper, combining literature research with theoretical analysis, empirical analysis with normative analysis, shifting from theory to empirical analysis to countermeasures, tries to parse labor costs influence on textile industry upgrading in the Chongqing. Specific operation procedure is as follows:basing its theory foundation on dynamic comparative advantage theory, efficiency wage theory, Lewis turning point and its corollary, incentive theory, value chain theory and other related theories, this study concludes the possible mechanism for labor cost influence on industry upgrading; Analysis of the minimum wage system, the wage guidance system and absolute and relative changes of the labor costs in Chongqing textile industry, comes to a conclusion that the labor costs in Chongqing textile industry is the rising; Of the basic characteristics of the city’s textile industry value chain, builds LIP index (Long-run Income Potential), measures overall upgrading ratio, from growth ability, the degree of labor intensive, and capital intensive, economic value added perspectives, analyzes the upgrading progress; Using econometric analysis method to empirically study the influence of the labor costs on textile industrial upgrading, which involves backwards stepwise regression analysis method, and analyses the influence mechanism of labor costs on industrial upgrading; Combining with empirical analysis conclusion with the mentioned theoretical framework, basing on the relationship between labor costs and the industrial upgrading, some countermeasures are proposed.The main conclusions of this paper, are:(1) The rise in the minimum wage, and in low price and high prices of wages guidance price under labor division of textile workers, both has provided the safeguard for the labor wage increase, which lays the foundations for the textile industry’s rising cost of labor. Through the analysis of worker’s wages in Chongqing textile industry, the author finds a trend of steadily an overall rising labor costs; comparing the overall labor productivity and annual output of textile industrial enterprises above designated size, the author finds that Chongqing textile industry still has the comparative advantage of labor costs.(2) Analyzing the basic characteristics of textile industry value chain in Chongqing first, the author points out that textile industry value chain in Chongqing defects, which is still in the stage of transforming primary processing to mass production, which is in the textile industry value chain level4, whose acquisition of value is quite low in the global textile industry value chain, thus restricts the development of textile industry in Chongqing. Second, by building a long-term income potential index LIP which measures textile industry overall upgrade, the results shows long-term income potential index rose from2.07312in1999to16.9978in2012.Therfore, textile industry in Chongqing upgrades somewhat. Finally analyzing the textile industry value chain of chemical fiber industry, textile industry growth ability (including garment, shoes, caps manufacturing), labor intensive, capital concentration and economic value added, the author finds that the chemical fiber industry in Chongqing has the characteristics of capital intensive and high mechanization degree, while the textile industry has the characteristics of strong growth ability and labor intensive, and garment, shoes, hats manufacturing industry has the characteristics of high added value. Upstream of textile industry value chain upgrade situation is good, downstream worse, the middle reaches the worst.(3) Through the related analysis, this paper proves that textile industry labor costs has a strong positive correlation with industrial upgrading, and labor costs and the textile industry LIP index contrast diagram shows that labor cost change trend and the textile industry upgrade are basically corresponding; Through the comparative analysis, there is no evidence showing connection between textile industry labor cost and industrial upgrading in Chongqing from1999to2003, while from2004to2012, labor costs and textile industrial upgrading is the optimal linear correlation, labor strength the function of industrial upgrading is0.7968%. Secondly, introducing internal R&D funds input, fixed asset investment amount, activity of science and technology personnel as the possible independent variables of industrial upgrading, building multiple regression model, the results prove that every1%increase in labor costs in textile industry will lead to0.74%of its upgrading; while every1%growth of activities of science and technology personnel will promote the textile industrial upgrading for1.43%; Textile industry labor costs and the number of science and technology personnel has a positive direct impact on the textile industrial upgrading, but internal R&D funds input and fixed asset investment amount has an insignificant indirect impact on the textile industrial upgrading.(4) Mechanism of rising labor cost upon industrial upgrade involves mechanism of seeking after profit, factor substitution mechanism, human capital investment mechanism.This paper comes to following suggestions:(1) Resolutely implement the minimum wage system and improve treatment of textile workers appropriately (2) Exploit the mechanism of labor costs reversal transforming industrial upgrading, ensure the fundamental part which the workers play in the independent innovation, implement technical innovation, and develop the key technique of textile industry (3) Increase human capital investment, improve the quality of the laborers, optimize the structure of intellectual supply, implement reform on the salary system, and attach importance to human cost efficiency. |
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