TY - JOUR
T1 - Impacts of innovation, export, and other factors on firm employment growth in Chinese manufacturing industries
AU - Mairesse, J.
AU - Wu, Y.
N1 - Funding Information:
This article deepens and expands greatly a previous paper coauthored with professor Yanyun Zhao and professor Feng Zhen (Mairesse et al., 2011), which emulates for China the framework of Harrison et al. (2014) for France, Italy, Spain, and the UK. The authors have benefitted from comments of participants to the various seminars and conferences, where drafts of this study were presented in the past five years. The authors are particularly thankful to Bronwyn Hall, Can Huang, Jordi Jaumandreu, Pierre Mohnen, Bettina Peters, Yanyun Zhao, and Feng Zhen. Yilin Wu also acknowledges that she has benefitted from the support of the Fundamental Research Funds for the Central Universities, and the Research Funds of Renmin University of China (Project No. 13XNK022).
Publisher Copyright:
© The Author(s) 2019. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.
PY - 2019/2
Y1 - 2019/2
N2 - This article presents empirical evidence on the impacts of product innovation, export, and other important factors on employment growth in Chinese manufacturing industries over the period 2000-2006. The results of our analysis show that the overall demand effect of firms' output growth on their average yearly employment growth amounts to 7.0%, of which 3.5%, 1.2%, 1.6%, and 0.7% correspond to the output growth of, respectively, domestic-old, export-old, domestic-new and export-new products. The displacement effect from process and organizational innovations, as measured by firms' productivity efforts to catch up with industry regional productivity frontiers, accounts for a 5.4% average reduction of yearly employment growth. We also observe a trade-off between growth of productivity and growth of employment, which could have been on average higher by 2% for productivity (16.8% instead of 14.8%) and lower by 2% for employment (1.4% instead of 3.4%).
AB - This article presents empirical evidence on the impacts of product innovation, export, and other important factors on employment growth in Chinese manufacturing industries over the period 2000-2006. The results of our analysis show that the overall demand effect of firms' output growth on their average yearly employment growth amounts to 7.0%, of which 3.5%, 1.2%, 1.6%, and 0.7% correspond to the output growth of, respectively, domestic-old, export-old, domestic-new and export-new products. The displacement effect from process and organizational innovations, as measured by firms' productivity efforts to catch up with industry regional productivity frontiers, accounts for a 5.4% average reduction of yearly employment growth. We also observe a trade-off between growth of productivity and growth of employment, which could have been on average higher by 2% for productivity (16.8% instead of 14.8%) and lower by 2% for employment (1.4% instead of 3.4%).
U2 - 10.1093/icc/dty066
DO - 10.1093/icc/dty066
M3 - Article
SN - 0960-6491
VL - 28
SP - 123
EP - 138
JO - Industrial and Corporate Change
JF - Industrial and Corporate Change
IS - 1
ER -