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The Influence of Labor Intensive Export on China's Economy Growth

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  • Emmanuel Olusegun Stober

    (Bucharest University of Economic Studies)

Abstract

This paper examines the sources of China’s economic growth, emphasizing the role of factor endowment. After evaluating the determinants of gross domestic product growth, it goes further to decompose the total export with Cobb–Douglas production function, which revealed increasing return to scale of 0.75 for labor intensive exports and 0.31 capital intensive exports. Revealed comparative advantage results reported that labor intensive export exerts a major impact on China’s development. They claim that margins for these goods are large. Thus, a drop in export arising from decrease in labor intensive export will cause a gap in China’s gross domestic product.

Suggested Citation

  • Emmanuel Olusegun Stober, 2014. "The Influence of Labor Intensive Export on China's Economy Growth," Working Papers 3, Bucharest Academy of Economic Studies, Research Center in International Business and Economics (RCIBE).
    • Handle: RePEc:bus:wpaper:3
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Factor endowment; GDP growth; Labor intensive export; Revealed Comparative Advantage; China’s economic development;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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