Impact Of Labor Price Distortions On The Export Trade For China's Manufacturing Enterprises

The export trade in China has been experiencing fast growth since the Reform and Opening up,making China the largest trading power in the world in 2013.However,China's trade interests obtained from export do not increase in line with the rapid expansion of business scale.Therefore,the extensive export growth model,which relies heavily on the "demographic dividend",has been widely questioned and criticized at home and abroad.Labor price distortion and low status in GVC division are two main reasons resulting in incompatibility of trade scale and trade interests.In view of this,this paper,based on the perspective of GVC division,explores the impacts of Labor price distortion on the export of enterprises.The study found that labor price distortion has positive impacts on export options and export scale of enterprises in general;the reason is that labor price distortion lowers manufacturing cost,however,this choice is"suboptima 1".And when the enterprise gains arising status in GVC division,the positive influences of labor price distortion towards export scale are strengthened.Hence,in order to optimize selection and size of export and gain more trade interests,it is necessary for manufacturing enterprises to continue to improve situations of labor price distortions,to optimize resource allocation,as well as to improve status in the GVC division,so as to acquire rights to discourse and get higher trade value.