The Influence Of Rising Labor Cost To The Foreign Trade Competitiveness Of Jiangsu Province

Since the reform and opening-up,China actively participate in the global value chain,China labor advantage with low export prices quickly swept the world market.Jiangsu Province as a strong economic province in China,which relying on its cheap labor cost advantage,took part in the international division of labor,and Jiangsu formed the industrial structure in manufacturing industry as the main part and the economic structure in highly dependent on foreign trade.In recent years,with the situation of labor decreasing,labor cost grow rapidly,most regions of Jiangsu Province appeared "shortage of migrant workers,and "labor shortage"phenomenon.However,at the same time,during the change of resource endowments,there had been a great change in foreign trade and industrial structure.Rising labor costs would undoubtedly weaken the trade competitiveness of labor-intensive traditional industries,but from a regional perspective of the overall scope and dynamics,the impact were not obvious.Industrial restructuring and promote innovation were all cause by rising labor costs,these facts could improve the competitiveness of foreign trade.How much impact did rising labor costs in Jiangsu influence export competitiveness?Researching and analyzing the impact of Jiangsu's rising labor costs to its foreign trade competitiveness has obvious guiding significance.This paper analyzed how rising labor costs affected competitiveness of Jiangsu Foreign Trade from the municipal level.Firstly,On the basis of combing the relevant literature domestic and foreign research labor and trade competitiveness,it deeply analyzed of current development of labor and foreign trade in Jiangsu Province.Secondly,we used related indicators to estimate Jiangsu foreign trade competitiveness.Finally,by building panel data econometric model and using Jiangsu economic data from 2000 to 2012,we empirical analyzed the impact of rising labor costs in Jiangsu foreign trade competitiveness.The results show that rising labor costs in Jiangsu foreign trade competitiveness had a significant negative impact,between different regions in Jiangsu,the difference of affect is very obvious.Rising labor costs had the largest impact on the foreign trade competitiveness of mid-Jiangsu,after it was north Jiangsu,and south-Jiangsu come last.Integrating these theoretical and empirical analysis,this paper gave some suggestions about macroeconomic of Jiangsu province,labor allocation and firms separately,which thought that enterprises should improve their own innovation ability and the added value of export products to reduce the negative impact of rising labor costs,and established sustainable competitive advantage in foreign trade.