| Because of abundant and cheap labor resources，China has gained a competitiveadvantage in the international market. However, as a comparative advantage of China’smanufacturing industry, low-cost labor also exists a negative impact. Long-termdependence on cheap labor costs has impeded technological progress and industrialupgrading, which led to ignorance of technology and capital-intensive industry.Inrecent years, the comparative advantage of low-cost labor in the manufacturing sectoris gradually subsided, replaced by a rise in wages. It’s important to study how laborcosts changes affect the development and upgrading of the manufacturing industry.Firstly, this thesis analysis why and how labor costs rising will come to theinevitable long-term trend. Secondly, the way the labor cost impact of the industrialstructure are analyzed in detail from the curing effect of low wages on the industrialstructure, improving the level of motivation to wage incentives, to promote theconsumption of accumulation. The impact on industry structure is summarized as:demand-pull mechanism, cost-push mechanism and the associated mechanisms of thethree affected system. In order to better reflect the impact of the labor factor of theindustrial structure, manufacturing industries are divided into labor-intensivemanufacturing industries, capital-intensive and technology-intensive industriesaccording to factor intensity. this thesis use2003-2012panel data to study the impactof rising manufacturing industry structure of wages for empirical analysis. Theempirical results show that the rise in labor costs for the three categories of industrieshave different impact, rising labor costs would lead to a decline in the proportion oflabor-intensive industries, to enhance the relative proportion of capital-intensiveindustries, while the technology-intensive industries showed no significant change.The structure of the degree of deviation from the results point of view, rising wagesreduced the labor-intensive industries exist hidden unemployment, per capita outputhas improved significantly, capital and technology-intensive industrial structure hasalso been optimized to varying degrees. Finally, in the summary of the conclusionsbased on the proposed transformation of economic growth in the context of rising laborcosts, this thesis make recommendations to upgrade manufacturing structure andimprove the international competitiveness of China’s manufacturing industry. |
