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Trade Openness, Economic Growth and the Vicissitude of Labor-intensive Industries: The Case of China

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  • Ying Ma

    (Center for Economic Development Research (CEDR), Wuhan University, P.R. China)

  • Jing Li

    (Economics School, Anhui University, P.R. China)

  • Guansheng Yu

    (Wenzhou University, P.R. China)

  • Dongyang Yuan

    (Shenzhen Branch of the People’s Bank of China, P.R. China)

Abstract

In this paper, we use China’s 1986-2008 data to make an empirical analysis on the interrelationship between trade openness, economic growth and the structural change of labor-intensive industries by using simultaneous equation models and a VAR model. Our empirical study leads to the three conclusions. First, trade openness has accelerated economic growth, though with some negative impact on the development of labor-intensive industries; Second, economic growth has had a positive effect on trade openness, but again negatively impacted the development of labor-intensive industries. Third, the expansion of labor-intensive industries has had negative effects on both trade openness and economic growth.

Suggested Citation

  • Ying Ma & Jing Li & Guansheng Yu & Dongyang Yuan, 2014. "Trade Openness, Economic Growth and the Vicissitude of Labor-intensive Industries: The Case of China," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 43(1), pages 7-31, September.
    • Handle: RePEc:vrs:ijomae:v:43:y:2014:i:1:p:7-31:n:1
    DOI: 10.1515/ijme-2015-0001
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    References listed on IDEAS

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    Cited by:

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    2. Senzele, Joseph, 2022. "Croissance économique et dégradation de l’environnement en Côte d’Ivoire : application du modèle stirpat [Economic growth and environmental degradation in Cote d'ivoire : stirpat model implementati," MPRA Paper 114754, University Library of Munich, Germany, revised 24 Sep 2022.
    3. Nabila Asghar & Awais Anwar & Hafeez Ur Rehman & Saba Javed, 2020. "Industrial practices and quality of environment: evidence for Asian economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7807-7829, December.
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    5. Afesorgbor, Sylvanus Kwaku & Demena, Binyam A., 2019. "The Effect of Trade on the Environment: Evidence from Meta-analysis," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291225, Agricultural and Applied Economics Association.

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