The Influence Of Chinese Value-Added Trade On Employment

Since the1980s, the open trade policy has boosted the domestic economy and indirectly promoted per capital benefit. The employment has also been increasingly influenced by international trade. Because trade has had an impact on the domestic product structure, especially, export has significantly facilitated the employment. And also, the scale of the trade has grown, which has connected China’s and international economy. In this case, the change of international economy will directly or indirectly affect the mainland employment. Millions of labor is related to international situation.Against the backdrop of global value chain, the international division of labor has gradually been characterized by fragmentation of production. It is imperative to study new trade statistics method, because repeated calculation of intermediate products appears in the traditional method. Value-added statistics effectively avoids this problem through decomposing additional value of exports during trade and truthfully reports each country’s volume of trade so as to provide a basis for policy-making.Reviewing the articles about the foreign trade and employment, this paper explains the relative concepts, systemically comments the theoretical literature which involves the add-value trade statistics and trade’s impact on employment, and analyzes the connection between trade and employment, namely, the specific ways that trade influences employment. Then it analyzes the necessity that China uses this method and the status quo of China’s added-value trade and employment, and tests it from two aspects:the whole part and each industry. Stata is adopted in the whole part and input-output table in each industry.Conclusion can be drawn after comparing the traditional and added-value statistics methods, that is, trade has dramatically promoted employment, but the effect of the traditional method is higher; the effect of labor-intensive industry is also higher than others. Therefore, the suggestions are as follows:China should utilize added-value statistics method; stick to export-oriented strategy; face up to the import’s impact on employment; speed up upgrading industrial structure to ensure job growth; cultivate talents guided by the industrial demands.