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Global value chains, wages, employment and labour production in China: A regional approach

Year: 2023

Type: article

Abstract: In this study we analyse the relationship of trade and global value chains (GVCs) to the labour market in 31 Chinese provinces for 25 sectors, by means of a system of structural equations. We firstly distinguish between provincial value chains (PVCs) and interprovincial value chains (PRVCs) in order to outline their distribution and evolution over time. Then, we investigate to what extent participation in GVCs, PVCs and PRVCs – along with trading in final goods and services – is associated with labour market outcomes, i.e., wages, employment and labour production. The results suggest that provinces/sectors with greater export penetration have higher employment and labour production, but lower wages. On the other hand, however, GVCs are found to impede growth in employment and labour production.

Source: Structural Change and Economic Dynamics

DOI: 10.1016/j.strueco.2023.12.005

Authors: Yuxin Lu, Edgardo Sica, Joanna Wolszczak-Derlacz

Institutions: Gdańsk University of Technology, University of Foggia

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,930