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Dynamic change of transnational labour transfer embodied in trade and China’s participation from the perspective of global supply chains

Author

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  • Bai, Yuzhe
  • Gu, Gaoxiang

Abstract

This study developed a multi-regional input-output model to analyse the international transfer patterns of trade embodied labour for the years 2004, 2007, 2011, 2014 and 2017. Considering the skill level, labour was divided into skilled and unskilled labour. The trends of China’s role in international division of labour were also explored from the perspective of global supply chains. The results indicate that China was the primary exporter of trade embodied labour. The USA and EU were not only the main importer but also exported significant effective skilled labour. From 2004 to 2017, the proportion of China’s outflow of effective skilled labour increased rapidly. Consequently, those of the USA, EU and Japan declined. The primary and secondary industries were the focus of China’s trade embodied labour outflows in the early stages. After 2011, influenced by policies such as “supply-side structural reform”, it became the tertiary industries.

Suggested Citation

  • Bai, Yuzhe & Gu, Gaoxiang, 2025. "Dynamic change of transnational labour transfer embodied in trade and China’s participation from the perspective of global supply chains," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 928-943.
    • Handle: RePEc:eee:streco:v:74:y:2025:i:c:p:928-943
    DOI: 10.1016/j.strueco.2025.06.014
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    Keywords

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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