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A Study On The Impact Of Export Destination Income Level On Wages Of Exporters

Posted on:2020-01-21Degree:MasterType:Thesis
Country:ChinaCandidate:M L ZhangFull Text:PDF
GTID:2439330623481050Subject:International Trade
Abstract/Summary:PDF Full Text Request
The choice of export destinations is becoming an important factor in the study of modern trade theory.With the expansion of the choice of export destinations in China,from less than 50 countries & regions in 1978 to 231 countries & regions in 2018,China is foreign trade import and export volume has also broken through a record high,reaching $4.62 trillion in 2018.Under the background of this economic situation,China's employment situation and wage income distribution gap are not optimistic: the employment structure is contradictory,and the wage income gap is obvious.Therefore,this paper takes the export destination income level as a new research perspective,establishes the theory and econometric model between the income level of export destinations,the wage level of exporters and the products quality,studies the product quality mechanism how does work between the income level of export destinations and the wage level of exporter.Firstly,Establish a theoretical model of the income level of export destinations,product quality,and wage level of exporter,including product quality valuation mechanism and product quality provision mechanism theory model;then Establish an econometric model based on the theoretical model,select the 2000—2013 matching industrial enterprise data and customs data for benchmark regression,the paper uses the OLS,OLS-FE and IV regression to find that there is significant evidence that exports products to export destinations with higher income levels,Exporter do pay a higher average wage for workers.Next,expand the analysis based on the benchmark regression.By dividing the export destination into High-income and Low-income types,the study found that the positive correlation between Low-income export destination income level and wage level is significantly higher than that the positive correlation of High-income export destination income level and export enterprise wage.that is to say,the increase in income levels in the Low-income export destination has a greater effect than High-income export destination on the wage growth of exporter.The reason is that:(1)The difference in income elasticity.the income elasticity of low-income export destinations is far greater than the income elasticity of high-income export destinations,the higher the income level of low-income export destinations,the greater the demand for products.(2)Different market structure.High_income export destination market is fiercely competitive,exporter lack pricing power and low profit margin.Low_income export destination market competition is not sufficient,exporter have a certain degree of pricing power,and the profit rate is high.3)The types of products exported are different.The types of products exported to the High_income export destination and exported to the Low_income export destination are different.By divided trade mode into two types of trade: general trade and processing trade.The study found that the positive correlation between the income level of export destinations and the wage level of enterprises under the general trade mode is higher than under processing trade mode.The positive correlation between the income level of the export destination and the wage level of the exporter under general trade mode is more conducive to promoting the wage level of the exporter.Because of the high value-added of general trade mode,processing trade is simply a process of exporting raw materials and low technical content.By divided export areas into four major economic regions: eastern,central,northeast,and western.The study found that the income level of export destinations has a more significant impact on wages in weaker regions.Eastern Region lower than Central region,Central region lower than Northeast Region,Northeast lower than Western Region,the wage level of exporter in the western region has the strongest growth in the income level of export destinations.The reason may be that wages in economically backward regions are low,and there is a large room for growth,while wages in economically developed regions are high,The degree is higher and there is not much room for wage growth.Secondly,this paper analyzes the mechanism based on the matching industrial enterprise database and customs database in 2004,and explores the operational mechanism of the export destination affecting the wage level of exporter—product quality valuation mechanism and product quality provision mechanism.The study found that the product quality valuation mechanism indicates that the higher the export destination income level,the higher the unit price of imported products,because high-income countries need high-quality products,and consumers have higher preferences for better products,Willing to pay a higher price for it.The study found that the product quality provision mechanism indicates that the higher the unit price of the export products of the exporter,the higher the skilled labor needs to be used by the exporter.The higher the unit price of the export products,the higher the wages paid by the exporter,so the higher quality is produced at the enterprise level.The products thus help to increase the average wage of exporting companies.Finally,that is concluded that the higher the income level of export destinations,the higher the wage level of export enterprises,the higher the income level of low-income export destinations and the higher the income level of export destinations than high_income export destinations.Compared with processing trade mode,general trade mode can more promote the increase of wages of export enterprises.The income level of export destinations has a greater effect on the increase of wages of export enterprises in areas with weak economic development.This is because the product quality valuation mechanism and the product quality provision mechanism play a conductive role.On the one hand,quality valuation mechanisms indicate that high-income countries require higher quality and are willing to pay higher prices.On the other hand,the quality provision mechanism indicates that high-quality production requires a higher-skilled workforce,and the corresponding wages will be higher.Therefore,this paper have some suggestions for nation and enterprise:(1)deepen the economic exchanges with high-income export destinations and low-income countries whose economies are developing at a high speed;enlarge and strengthen general trade,optimize processing trade;encourage foreign trade in economically backward regions development;(2)exporter must proceed from their own capabilities,choose the appropriate target market;pay attention to the economic status of skilled workers;formulate a reasonable salary system to encourage employees' enthusiasm.
Keywords/Search Tags:export destination, skilled labor, wages, product quality
PDF Full Text Request
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