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How important are exports for job growth in China? A demand side analysis

Author

Listed:
  • Los, Bart
  • Timmer, Marcel P.
  • de Vries, Gaaitzen J.

Abstract

We analyze the impact of foreign demand on Chinese employment creation by extending the global input–output methodology introduced by Johnson and Noguera (2012). We find that between 1995 and 2001, fast growth in foreign demand was offset by strong increases in labor productivity and the net effect on employment was nil. Between 2001 and 2006, booming foreign demand added about 70 million jobs. These jobs were overridingly for workers with only primary education. Since 2006 growth in domestic demand for non-tradables has become more important for job creation than foreign demand, signaling a rebalancing of the Chinese economy.

Suggested Citation

  • Los, Bart & Timmer, Marcel P. & de Vries, Gaaitzen J., 2015. "How important are exports for job growth in China? A demand side analysis," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 19-32.
  • Handle: RePEc:eee:jcecon:v:43:y:2015:i:1:p:19-32
    DOI: 10.1016/j.jce.2014.11.007
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    References listed on IDEAS

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    Cited by:

    1. Duan, Yuwan & Jiang, Xuemei, 2017. "Temporal Change of China's Pollution Terms of Trade and its Determinants," Ecological Economics, Elsevier, vol. 132(C), pages 31-44.
    2. repec:bla:reviec:v:26:y:2018:i:5:p:1053-1083 is not listed on IDEAS
    3. Robert C. Feenstra, 2017. "Statistics to Measure Offshoring and its Impact," NBER Working Papers 23067, National Bureau of Economic Research, Inc.
    4. Robert C. Feenstra & Akira Sasahara, 2018. "The ‘China shock,’ exports and U.S. employment: A global input–output analysis," Review of International Economics, Wiley Blackwell, vol. 26(5), pages 1053-1083, November.
    5. Ďurčová, Júlia & Mirdala, Rajmund, 2016. "Offshoring Intensities and Skill Upgrading of Employment in the Slovak Republic," MPRA Paper 79921, University Library of Munich, Germany.
    6. Abdul Abiad & Kristina Baris & John Arvin Bernabe & Donald Jay Bertulfo & Shiela Camingue-Romance & Paul Neilmer Feliciano & Mahinthan Joseph Mariasingham & Valerie Mercer-Blackman, 2018. "The Impact of Trade Conflict on Developing Asia," Working Papers id:12953, eSocialSciences.
    7. repec:gam:jsusta:v:11:y:2019:i:14:p:3986-:d:250851 is not listed on IDEAS
    8. Matthieu Crozet & Laura Hering & Sandra Poncet, 2018. "Looking for the Bright Side of the China Syndrome: Rising Export Opportunities and Life Satisfaction in China," Working Papers 2018-14, CEPII research center.
    9. repec:ura:ecregj:v:1:y:2017:i:3:p:789-802 is not listed on IDEAS
    10. Asian Bank, 2018. "Asian Development Outlook (ADO) 2018: How Technology Affects Jobs," Working Papers id:12717, eSocialSciences.
    11. Sasahara, Akira, 2018. "Explaining the Employment Effect of Exports: Value-Added Content Matters," MPRA Paper 89731, University Library of Munich, Germany.
    12. repec:dug:journl:y:2017:i:1:p:122-130 is not listed on IDEAS
    13. repec:vrs:foeste:v:18:y:2018:i:1:p:123-143:n:10 is not listed on IDEAS
    14. Ďurčová, Júlia & Mirdala, Rajmund, 2017. "Tracing Value Added and Job Creation across Industries in the Slovak Republic," MPRA Paper 82862, University Library of Munich, Germany.

    More about this item

    Keywords

    International fragmentation of production; Global value chains; China; World input–output tables;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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