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Impacts of innovation, export, and other factors on firm employment growth in Chinese manufacturing industries

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  • Jacques Mairesse
  • Yilin Wu

Abstract

This article presents empirical evidence on the impacts of product innovation, export, and other important factors on employment growth in Chinese manufacturing industries over the period 2000–2006. The results of our analysis show that the overall demand effect of firms’ output growth on their average yearly employment growth amounts to 7.0%, of which 3.5%, 1.2%, 1.6%, and 0.7% correspond to the output growth of, respectively, domestic-old, export-old, domestic-new and export-new products. The displacement effect from process and organizational innovations, as measured by firms’ productivity efforts to catch up with industry regional productivity frontiers, accounts for a 5.4% average reduction of yearly employment growth. We also observe a trade-off between growth of productivity and growth of employment, which could have been on average higher by 2% for productivity (16.8% instead of 14.8%) and lower by 2% for employment (1.4% instead of 3.4%).

Suggested Citation

  • Jacques Mairesse & Yilin Wu, 2019. "Impacts of innovation, export, and other factors on firm employment growth in Chinese manufacturing industries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(1), pages 123-138.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:1:p:123-138.
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    File URL: http://hdl.handle.net/10.1093/icc/dty066
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    Cited by:

    1. Juthathip Jongwanich & Archanun Kohpaiboon & Ayako Obashi, 2020. "Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing," Working Papers DP-2020-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Mincheol Choi & Chang‐Yang Lee, 2020. "The Peter Pan syndrome for small and medium‐sized enterprises: Evidence from Korean manufacturing firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 426-445, April.
    3. Juthathip Jongwanich & Archanun Kohpaiboon & Ayako Obashi, 2020. "Technological Advancement, Import Penetration, and Labour Markets: Evidence from Thai Manufacturing," Working Papers ERIA-DP-2020-09, Economic Research Institute for ASEAN and East Asia (ERIA).

    More about this item

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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