Research On The Effects Of China’s Foreign Trade To Effective Employment

Economic growth and full employment are important targets of macroeconomic policies.With the end of transition period of China’s accession to the WTO,The influence of foreign trade on China’s economy and society is becoming more and more obvious.China’s foreign trade dependence in recent ten years is close to 50%.But,China is still facing more severe employment pressure along with the development of China’s foreign trade.The domestic scholars’ research on the employment problem in our country indicates that there is a serious recessive unemployment in our country.Therefore,it is necessary to study the contribution of foreign trade to effective employment growth.The research can provide the basis for China’s foreign trade and employment policy.This paper is based on the research of domestic and foreign scholars.Firstly,the framework of theoretical analysis was established.Then,based on the theoretical analysis framework,the econometric model is established which estimating effective employment in China.And then,By using the statistical method of time series analysis of research data,through the unit root test,Johansen test and Granger causality test Conduct research.The results show that there is a insostasy relationship between China’s foreign trade volume and effective employment volume.It mean there is a long-term equilibrium relationship between foreign trade and effective employment.Finally,I summary the theoretical analysis and empirical results and give some advises for foreign trade and employment policy according to China’s current foreign trade situation and employment situation.