Research Of The Impact Of The Domestic Value Added Rate Of Manufacturing Exports On Labor Income Share

With the continuous deepening of economic integration,all countries in the world are actively integrating themselves into the global production system and trade network,and the status of international trade in various countries constantly changes.According to Stolper-Samuelson's theorem,long-term export trade will increase the remuneration of production factors used intensively in the export industry of a country.According to the current situation of China's manufacturing industry and the export trade,it can be inferred that the remuneration of labor workers in China and their welfare will be therefore raised.However,the fact is that with the rapid growth of China's manufacturing exports in recent years,its labor income share has been declining steadily.Based on the labor advantage of China's manufacturing industry,China has actively integrated itself into the global production system and trade network,and tried to change the mode of economic development in this way.It is unknown,however,whether this approach to transforming the mode of economic development really benefits labor workers.By investigating the impact of the domestic value-added rate of manufacturing exports on the proportion of labor income,we can find an effective breakthrough to increase the proportion of labor income from the perspective of profittaking among international trade.Increasing the proportion of labor income will not only stimulate domestic consumption and promote the upgrading of industrial structure,but also solve the problem of income distribution gap.Therefore,under the background that China tries to change the mode of economic growth and its rapid export growth by means of "participating in vertical specialization production",studying the impact of the domestic value-added rate of manufacturing exports on the proportion of labor income from the perspective of profit-making among international trade is of great practical significance for improving the consumption level of Chinese laborers and stimulating economic growth.Based on the related researches both at home and abroad,using the noncompetitive input-output model and utilizing the input-output data from 1995 to 2011 around the world provided by the OECD database,this paper measured and comparatively analyzed the domestic value-added rate and labor income ratio from the manufacturing industry in 55 countries or regions in the world and China's 16 manufacturing sub-sectors.It's the first time to investigate the impact of the domestic value-added rate of manufacturing exports on the labor income share at a cross-border level and China's sub-sectors level.The study found that in 1995-2011,the average value-added rate and labor income of manufactured exports of developed economies was higher than that of developing economies in almost every year,and especially in the gap of labor's income share.For China's manufacturing sub-sectors,the mean valueadded rate in labor-intensive industries of China is significantly higher than that of capital-intensive ones,but the former labor income share shows an opposite result.Through empirical analysis,it is found that the domestic value-added rate of exports,both at a cross-border level and at China's sub-sectors level,has a positive effect on the promotion of the proportion of labor income.To verify and test the reliability of the results,this paper makes further use of the residual stability of the estimation results at a cross-border level and applies the robustness of two-phase GMM estimation of the tool variables at China's sub-sectors level.Combined with China's current overall development,the policy implications this paper theoretically analyzed and demonstrated include:(1)Relevant departments of the Chinese government should encourage manufacturing enterprises to learn advanced production technologies from foreign enterprises and promote greater use of their raw materials in the production of final products;(2)The subsidy for laborers from fiscal expenditures and the income of laborers should be increased;(3)Increase the introduction of foreign capital by encouraging manufacturing enterprises and foreign enterprises to cooperate and some others;(4)Put forward to appropriate rules or policies to improve the quality of education so as to raise the level of human capital;(5)Encourage enterprises to increase R & D investment by issuing R & D subsidies or setting R & D achievement awards.