An Empirical Study On The Impact Of Rising Labor Costs On China’s Manufacturing Import And Export Trade

With the rapid development of international trade,the import and export trade of Chinese manufacturing industry has made great contribution to the development of China’s economy.At the same time,in recent years,China’s “demographic dividend” has gradually disappeared,and the state of excess labor supply has ended,and the “Lewis turning point” is also approaching.Chinese companies are generally facing the pressure of rising labor costs.This paper analyzes the influence of the present situation on the import and export of China’s manufacturing industry.First of all,this paper takes the classical theory of international trade,such as absolute advantage theory,comparative advantage theory,Factor endowment Theory and factor price equalization theorem as the foundation and support for the overall study.The paper also describes the development of China’s manufacturing industry and its import and export through relevant data related theory,and objectively measures the overall situation of China’s foreign trade by using various comparative advantages,international market share,trade Competition index and PMI index.Moreover,this paper calculates the degree of export dependence and the import penetration rate to analyze the degree of trade freedom and foreign dependence of China’s manufacturing industry at present.Secondly,based on the previous chapters,this paper compares the average wage level and unit labor cost of manufacturing industry in China in recent years,and finds that the labor cost of Chinese manufacturing industry is rising and unavoidable.Subsequently,this paper selects the relevant variables,processing panel data,construction of the econometric model,from two angles(average wage level,unit labor cost)to empirically study the impact of labor costs on China’s manufacturing imports,exports and total trade.In order to be used in practice,this paper deeply analyzes the influence of labor cost on different types of manufacturing industry.Reference to the existing domestic and foreign research,the types of manufacturing are divided into three categories: labor-intensive,capital-intensive,and technology-intensive.As for the import and export of the three types of manufacturing industries,empirical studies are still conducted from two perspectives.The empirical results of the two perspectives are combined to analyze the results of the analysis of the impact of changes in labor costs on Chinese manufacturing foreign trade,but also reflects the trend of China’s manufacturing transformation and upgrading.Finally,this article summarizes the relevant conclusions and puts forward the relevant recommendations on the basis of the results.The government can refer to it as appropriate at the policy level.The increase in the cost of labor in China is a big trend,and it is the pressure that all companies have to face,but it is not a heavy blow to companies or industries.It shows that China’s manufacturing industry has readjusted its structure and changed its production methods.From "Made in China" to "China’s Ingenuity," it is an indispensable part of China’s manufacturing industry toward a strong manufacturing nation.