Services Trade and Labor-Demand Elasticities of Service Sector: Empirical Evidence from China ()
Abstract
This paper analyses the impact of services trade on the labor-demand elasticities of service sector with the data of China from 1982 to 2009.we find that: 1) First, no matter in the long run or in the short term, China’s services export distinctly impacts on the labor-demand elasticities of service sector. In the long-term influence, the substitution effect is much more powerful than the output effect, however, as to the short period, the output effect is a little stronger than the substitution effect; 2) Second, in the long run, we cannot reject the hypothesis of no relationship between service import openness and the labor-demand elasticities of service sector. Whereas, studying the result of the short term, trade liberalization of services import does affect the service sector labor-demand elasticity weakly.
Share and Cite:
Wei, H. , Fu, Q. and Yang, S. (2012) Services Trade and Labor-Demand Elasticities of Service Sector: Empirical Evidence from China.
American Journal of Industrial and Business Management,
2, 136-144. doi:
10.4236/ajibm.2012.24018.
Conflicts of Interest
The authors declare no conflicts of interest.
References
[1]
|
D. S. Hamermesh, “Labor Demand,” Princeton University Press, Princeton, 1993.
|
[2]
|
D. Rodrik, “Has Globalization Gone too Far?” Institute for International Economics, Washington DC, 1997.
|
[3]
|
M. J. Slaughter, “International Trade and Labor Demand Elasticities,” Journal of International Economics, Vol. 54, No. 1, 2001, pp. 27-56.
doi:10.1016/S0022-1996(00)00057-X
|
[4]
|
R. Hasan, D. Mitra and K.V. Ramaswamy, “Trade Reforms, Labor Regulations and Labor Demand Elasticities: Empirical Evidence From India,” Working Paper 9879, NBER, 2003.
|
[5]
|
I. Haouas and M. Yagoubi, “Trade Liberalization and Labor-Demand Elasticities: Empirical Evidence from Tunisia,” IZA Discussion Paper, No. 1084, 2004.
|
[6]
|
P. Fajnzylber and W. F. Maloney, “Labor Demand and Trade Reform in Latin America,” Journal of International Economics, Vol. 66, No. 2, 2005, pp. 423-446.
doi:10.1016/j.jinteco.2004.08.002
|
[7]
|
S. Zhou, “Empirical Research on Trade Liberalization’s Impact on Industry Sector Labor-Demand Elasticities,” World Economy, Vol. 29, No. 2, 2006, pp. 31-40.
|
[8]
|
D. Greenway, R. C. Hine and P. Wright, “An Empirical Assessment of the Impact of Trade on Employment in the United Kingdom,” European Journal of Political Economy, Vol. 15, No. 3, 1999, pp. 485-500.
doi:10.1016/S0176-2680(99)00023-3
|