A Study On The Influence Of Minimum Wage On The Cost Addition Of Chinese Export Enterprises

Following the tide of economic globalization,China continues to expand the scale of international trade,especially the rapid development of China’s export trade,which plays an important role in improving our national employment rate and promoting national economic growth.Since the introduction of incremental increment and incomplete competition theory in international trade industry cost plus achievement has attracted extensive attention due to its rich connotation and policy implications.For China’s export enterprises,their cost-plus advantage mainly comes from China’s low-cost labor force,and export enterprises gain profit growth through low labor costs.In recent years,China’s minimum wage standards continue to rise and adjustment range increases continuously,which leads to labor costs increase,correcting China labor price low situation,export enterprise cost addition impact,export enterprises competitiveness may be worse than before.Under this circumstance,our export enterprises will consider adopting appropriate economic measures to adjust cost addition to cope with the impact of labor cost improvement.On the basis of combing the previous research results,this paper focuses on the impact of minimum wage on the cost addition of Chinese export enterprises.This paper first analyzes the development of the minimum wage standard in China from 1998 to 2017,and then analyzes the channels through which the minimum wage affects the enterprise cost bonus,that is,it affects the enterprise cost bonus through the cost effect and productivity improvement effect.Then using Chinese industrial enterprise database,minimum wage data obtained manually and regional macroeconomic data in urban statistical yearbook of China,fixed effect model is used to analyze the effect of minimum wage on export enterprises cost addition.In order to further verify the robustness of the results,endogenous problem processing,sample robustness test and model robustness test were carried out.Finally,according to the empirical results,the paper puts forward some practical and effective policy recommendations,summarizes the shortcomings of this paper and carries on the research prospect.The research results of this paper show that: after controlling the main control variables at the enterprise level,industry level and regional level,the increase of the minimum wage will significantly reduce the cost bonus of export enterprises,and every10% increase in the minimum wage.The cost plus achievement of export enterprises decreased by 6.49%,and the regression coefficient was significant at the level of 1%.And this conclusion is still significant after dealing with endogenous problems,sample robustness test and model robustness test.In this regard,our government and enterprises should adopt appropriate policies to deal with the problem of cost bonus reduction caused by the rise of the minimum wage.it includes the formulation of other more effective public support policies to protect low-income groups together with the minimum wage policy,the government to take appropriate measures to encourage export enterprises to innovate,and to formulate a minimum wage level adapted to the affordability of the local economy according to the actual situation of various localities.