The Impact of Export on China's Labor Standards: Empirical Analysis Based on Vector Auto-Regression Model

Abstract:

This paper focuses on the impact of export on China's labor standards through empirical analysis. After building a stable vector auto-regression model, it uses the changing rate of the value of export as the index of export, and the growth rate of worker’s real wages as the index of labor standards. The result of estimation indicates that export has significant positive impact on China’s labor standards. The estimation of vector error correct model, the result of impulse responses and variance decompositions and the Granger causality test confirms that. The result of empirical analysis finds no evidence of the race-to-the-bottom of labor standards in China.

• Periodical: Advanced Materials Research (Volumes 268-270)
• Pages: 1992-1997
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.268-270.1992
• Online since: July 2011
• Authors: Bo Wang
• Keywords: Export, Labor Standard, Race to the Bottom, VAR Model

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