A Study On The Impact Of The Increase Of Labor Cost On China's Export Trade

The financial crisis interrupted the steady development of the global economy for 20 years.After the crisis period,China's economic growth began to slow down.With the rapid development of urbanization in recent years,China's labor costs are also rising year by year.On the one hand,with the rapid development of China's urbanization in recent years and the continuous improvement of people's living standards,China's labor costs are also increasing year by year.From 2001 to 2008,the average annual growth rate of average wage,about employed persons in urban units,was 15.1%.From 2009 to 2014,this figure was 11.7%.On the other hand,with the rising labor costs in China,the labor-intensive processing trade industry began to shift to new developing countries with lower labor costs,which also formed a huge competition for China's processing trade industry and export trade industry pressure.Resource factor endowment is an important factor affecting the development of a country's export trade.Since the reform and opening up,abundant labor supply and cheap labor costs have been an important support for China's development of export trade to participate in international competition.At the micro level,the change of labor cost affects the export cost of China's export enterprises,which directly affects the international competitiveness of China's export enterprises,especially the processing trade enterprises.At the macro level,the change of labor cost affects the development trend and internal structure of China's export trade industry.With the acceleration of China's urbanization process and the changes in the international economic environment,the extensive development model of China's economy has become unsustainable.The adjustment and upgrading of industrial structure put forward new requirements for China's export trade industry.However,labor-intensive export trade development model is clearly unable to adapt to China's economic restructuring and development requirements.Under the low technological level,the continuous improvement of labor cost will inevitably lead to the increase of production cost,thus affecting the competitiveness of China's export trade enterprises.Low value-added and extensive export-oriented trade development model must not be sustained.How does the rising cost of labor affect the development of China's export trade enterprises?How to transform and develop China's labor-intensive processing trade enterprises under the pressure of labor cost?How does rising labor costs affect the transformation and upgrading of China's export trade?How to explore a sustainable trade development path in a new international economic environment?In the new economic reality,a series of questions need to be answered.Therefore,the study of the relationship between labor costs and the development of China's export trade has far-reaching significance.Based on the changes of trade cost and production cost,this paper takes the panel data of 27 manufacturing industries as the micro-foundation and adopts the method of theoretical analysis and empirical analysis to analyze the relationship between labor cost and the development of China's export trade analysis.The article is divided into six parts to discuss.The first part is the introduction of this article,mainly summed up and summarized the previous research and literature.The second part mainly introduces the theory of labor supply and the development of foreign trade,as the theoretical basis and support of the full text.The third chapter mainly introduces the present situation of the labor market and China's export trade.The fourth part explains the influence mechanism of labor factor cost change on China's export trade development.The fifth part is the empirical analysis.Based on the panel data of 27 industries from 2003 to 2013,this paper analyzes the impact of the rising labor cost on the export of enterprises and the labor productivity in the two economic periods before and after the 2008 financial crisis,and explains the mechanism of export trade development.The results show that,on the one hand,the rise of labor wages is an important factor affecting the development and transformation of China's export trade.On the other hand,with the international economic environment changes,the early stage of export trade depends on the economies of scale advantage is gradually weakened.Extensive export trade model will be unsustainable.The sixth part is policy recommendations.On the basis of theoretical and empirical analysis,this paper puts forward some policy suggestions on the transformation and development of China's export trade industry.