Empirical study on international production fragmentation shall China promote processing trade?

International labor fragmentation brought about great impacts on the participant countries. Based on the data of Chinese industries, and adopted the proper index, the following conclusions are obtained. Firstly, participating in the international labor fragmentation is helpful to improve China'...

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Bibliographic Details
Main Authors: Xing Li-Rong, Gao Yue, Zheng Hai-Jian
Format: Conference Proceeding
Language:English
Subjects:
Employment
Indexes
industrial productivity
Industries
Investments
non-processing trade
Outsourcing
processing trade
production fragmentation
Productivity
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Summary:International labor fragmentation brought about great impacts on the participant countries. Based on the data of Chinese industries, and adopted the proper index, the following conclusions are obtained. Firstly, participating in the international labor fragmentation is helpful to improve China's industrial productivity. Secondly, undertaking international production fragmentation actively has greater impacts on industrial productivity than passive participation in the international production fragmentation. Finally, production fragmentation in the form of non-processing-trade has greater impact on the enhancement of productivity than production fragmentation in the form of processing-trade. Thus, China shall take more part in the non-processing trade instead of developing processing trade and policies shall be set out to encourage initiative participation in the international production fragmentation.
DOI:10.1109/ICBMEI.2011.5917916