The Effect Of Industry-specify Real Effective Exchange Rate Movements On The Labor Employment Of Manufacturing Industries In China

Based on the Cobb-Douglas production function,the paper deduced the labor demand function of the enterprise.Based on the labor demand function,the paper studied the transmission channels of exchange rate to employment.And the results showed that the effect of exchange rate on labor employment in manufacturing enterprises is mainly due to the effect of exchange rate on export and exchange rate on capital intensity and exchange rate on the efficiency of the enterprise.On the basis of this,the labor demand function was extended and the hypothesis was put forward.Based on the data of manufacturing enterprises in 2001-2006 under the 2-digit industry code,the paper used the fixed effect regression and the residual substitution method to carry on the empirical research.The study found that the appreciation of China Yuan on Chinese manufacturing enterprises labor demand generated a statistically significant negative impact.The negative impact of the appreciation of the renminbi on the labor demand of manufacturing enterprises is reinforced due to its negative impact on capital inflows and exports,but weakened because of its negative impact on capital intensity.In the three channels,the export channel is the most influential channel.