Analyze The Impact Of China's Foreign Trade On Employment Under Financial Crisis

When the global economy is in good condition, the development of the international trade would improve the growth of China’s GDP and increase the employment. By the growth of China’s economy, the development mode of China’s economy and trade has been changed. During this process, the economic and trade structure adjusts constantly, the population structure alters. Under such background, the employment issues is becoming more and more prominent. Especially after the outbreak of the financial crisis, the international trade industry is still struggling with the the negative effects caused by the international financial crisis. Meanwhile the increasing appreciation of the RMB makes the low-cost labor advantage gradually weakened. The international capital flows into Southeast Asia countries with lower-cost labor. The employment growth speed is unable to catch up with the economy growth speed. In such situation, the analysis of the relationship between the international trade and the employment under the background of financial crisis, and how to solve these two issues, is the key point whether we can maintain the stability of the economy and employment in the crisis.This thesis provides some suggestions about the China’s international trade and the employment issues by studying the general path effect of the international trade to the employment and analyzing the relationship between the international trade and the employment considering the practical situation of the current financial crisis. We can achieve the practical significance of the following three aspects:First, to understand the relationship and linkage mechanism between the foreign trade and employment in China, clear the way and extent of the foreign trade on employment quantity, employment structure and so on; Second, we can understand the degree of our country is affected the financial crisis at the present stage, as well as the overall foreign trade situation, for our country to better cope with the financial crisis and provide the basis for solving the employment problem; Third, in a crisis, we can use the right policies and practices, ease the problem of trade atrophy reduce employment.When economic recovery, to quickly occupy the international market, to provide policy guidance and reference for the recovery of foreign trade and increase employment.This thesis is structured as the following. Firstly, we introduce the problem, the motivation, the contribution and the contents of the thesis. The second part is the analysis of the mechanism of how the international trade takes effects on the employment. In this part, we reviewed the theories of the international trade and employment and discussed the impact of the international trade to the employment. In the third part, through the analysis of the employment situation before and after the financial crisis impact the international trade and the situation of China’s employment structure, we described the problems existing in the present stage. The fourth part, we did the empirical research. First of all, through the regression testing of the model, we obtain impact of the China’s international trade on employment situation since the reform and opening up. Then, we tested the China’s international trade impact on the employment through all the time after the financial crisis, joined the data regression test to test before and after the outbreak of the financial crisis. The result shows that China’s export trade has a positive effect on employment before the financial crisis, and exports declined function on the promotion of employment after the financial crisis. The fifth part, summarize the research conclusion. maintain the relevant measures of the trade employment stability and security to deal with the financial crisis, and puts forward the corresponding policy recommendations.