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Book part
Publication date: 27 August 2016

Carl Lin and Myeong-Su Yun

The minimum wage has been regarded as an important element of public policy for reducing poverty and inequality. Increasing the minimum wage is supposed to raise earnings for…

Abstract

The minimum wage has been regarded as an important element of public policy for reducing poverty and inequality. Increasing the minimum wage is supposed to raise earnings for millions of low-wage workers and therefore lower earnings inequality. However, there is no consensus in the existing literature from industrialized countries regarding whether increasing the minimum wage has helped lower earnings inequality. China has recently exhibited rapid economic growth and widening earnings inequality. Since China promulgated new minimum wage regulations in 2004, the magnitude and frequency of changes in the minimum wage have been substantial, both over time and across jurisdictions. The growing importance of research on the relationship between the minimum wage and earnings inequality and its controversial nature have sparked heated debate in China, highlighting the importance of rigorous research to inform evidence-based policy making. We investigate the contribution of the minimum wage to the well-documented rise in earnings inequality in China from 2004 to 2009 by using city-level minimum wage panel data and a representative Chinese household survey, and we find that increasing the minimum wage reduces inequality – by decreasing the earnings gap between the median and the bottom decile – over the analysis period.

Details

Income Inequality Around the World
Type: Book
ISBN: 978-1-78560-943-5

Keywords

Article
Publication date: 10 October 2018

Yong-Ki Min, Sang-Gun Lee and Yaichi Aoshima

Starting from industry 4.0 in Germany and followed by the New Strategy for American Innovation in the USA and the smartization strategy in Japan, developed countries are pushing…

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Abstract

Purpose

Starting from industry 4.0 in Germany and followed by the New Strategy for American Innovation in the USA and the smartization strategy in Japan, developed countries are pushing nation-wide innovation strategies. Similarly, China is pursuing the Made in China 2025, and Korea announced the Manufacturing Industry Innovation 3.0 strategy. However, few researchers have identified the industrial structure that establishes the foundation of the 4th Industrial Revolution or have derived strengths and weaknesses to provide implications on policy formulation through quantitative comparison with developed countries. Therefore, the purpose of this paper is to analyze the spillover effect of the information and communication technology (ICT) industry (the foundation of the 4th Industrial Revolution) and machinery·equipment industry (the foundation of smart manufacturing through convergence with ICT industry).

Design/methodology/approach

This study examines the industrial spillover effects of the ICT industry and machinery·equipment industry in the USA, Germany, Japan, China and Korea by using the World Input–Output Table from 2000 to 2014.

Findings

The results showed that backward linkage effect of the ICT Industry are high in the order of Korea≑China>Japan>the USA≑Germany, and forward linkage effect of the ICT industry are high in the order of Japan ≑> the USA≑Korea ≑> China ≑> Germany. Backward linkage effects of the machinery·equipment industry are high in the order of China>Japan≑Korea>the USA>Germany, and forward linkage effects of the machinery·equipment industry are high in the order of China>Korea>Germany≑Japan≑the USA.

Practical implications

China and Korea encourage active government investment in ICT and machinery·equipment industries, especially the intentional convergence between ICT and machinery·equipment industries is expected be generate higher synergy. The “innovation in manufacturing” strategy in the USA that utilizes its strength in ICT services seems appropriate, whereas Germany needs to revitalize the ICT industry to strengthen its manufacturing industry. Japan’s strategy is to focus its ICT capabilities on robot sector. While the scope of innovation is limited, its synergy is worth expecting.

Originality/value

This study attempted to provide a theoretical approach to the determination of national policy strategies and provide practical implications for response to the impacts of the 4th Industrial Revolution, by comparing the inducement effects of ICT and machinery·equipment industries between major countries.

Details

Industrial Management & Data Systems, vol. 119 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 19 December 2022

Lamei He, Jianping Zha, Jianying Tang, Ting Tan and Qiao Yu

Tourism is a labor-intensive sector with extensive links to other industries and plays a vital role in creating employment. This study aims to propose a new framework to analyze…

Abstract

Purpose

Tourism is a labor-intensive sector with extensive links to other industries and plays a vital role in creating employment. This study aims to propose a new framework to analyze the intrinsic structure of the employment effects of tourism-related sectors and their drivers.

Design/methodology/approach

This study uses input–output and structural decomposition analysis (IO-SDA) to quantify the employment effects of tourism-related sectors and their driving mechanisms based on China’s I-O tables of 2002, 2007, 2012 and 2017.

Findings

The results show a declining trend in the intensity of direct or indirect employment effects in tourism-related sectors, indicating a decreasing number of jobs directly or indirectly required to create a unit of tourism output. Among tourism-related sectors, catering has the highest intensity of indirect employment effects over the study period. Catering stimulates the indirect employment of agriculture, forestry, animal husbandry, fishery and food and tobacco manufacturing. The decomposition analysis reveals that final demand is the largest contributor to the increase in tourism employment, while technological progress shifts from an employment-creation effect in 2002–2012 to an employment-destruction effect in 2012–2017.

Originality/value

This study proposes a new analytical framework to investigate the structural proportional relationship between the direct and indirect employment effects of various tourism-related sectors and their dynamic changes. Doing so, it provides valuable references for policymakers to promote tourism employment.

旅游相关部门就业效应的驱动因素:以中国为例

摘要

研究目的

旅游业是一个劳动密集型部门, 与其他国民经济部门有着广泛的联系, 这在创造就业方面发挥着重要作用。本研究旨在建立一个框架, 分析旅游相关部门就业效应的内在结构及其驱动因素。

研究设计

本研究基于中国2002年、2007年、2012年和2017年的投入产出表, 引入投入产出和结构分解分析(IO-SDA)法量化了旅游相关行业的就业效应及其变化的驱动机制。

研究结果

旅游相关部门的直接或间接就业强度呈下降趋势, 可见创造一个单位的旅游产出所需的直接或间接工作数量在减少。在旅游相关部门中, 餐饮部门在研究期内的间接就业效应强度最高, 主要带动了农、林、牧、渔业和食品及烟草制造业的间接就业。旅游就业效应变动的驱动因素中, 最终需求是旅游就业效应增加的最大贡献者, 技术效应从2002-2012年期间的就业创造效应转变为2012-2017年期间的就业破坏效应。

研究原创性

本研究建立了一个全新的分析框架, 可以揭示各个旅游相关部门的直接和间接就业效应之间的结构比例关系及其动态变化。对旅游就业效应的驱动因素分析可以为政策制定者提供针对性的建议, 以促进旅游就业。

Factores que impulsan los efectos del empleo en los sectores relacionados con el turismo: El caso de China continental

Resumen

Propósito

El turismo es un sector intensivo en mano de obra con amplios vínculos con otras industrias y desempeña un papel vital en la creación de empleo. Este estudio propone un nuevo marco para analizar la estructura intrínseca de los efectos en el empleo de los sectores relacionados con el turismo y sus impulsores.

Diseño/metodología/enfoque

Este estudio utiliza el análisis de entrada-salida (input-output) y de descomposición estructural (structural decomposition) (IO-SDA) para cuantificar los efectos sobre el empleo en los sectores relacionados con el turismo y sus mecanismos impulsores, basándose en las tablas input-output de China de 2002, 2007, 2012 y 2017.

Conclusiones

Los resultados muestran una tendencia a la baja en la intensidad de los efectos directos o indirectos del empleo en los sectores relacionados con el turismo, lo que indica un número cada vez menor de puestos de trabajo directos o indirectos necesarios para crear una unidad de producción turística. Entre los sectores relacionados con el turismo, la restauración tiene la mayor intensidad de efectos indirectos sobre el empleo durante el periodo de estudio. La restauración estimula el empleo indirecto de la agricultura, la silvicultura, la ganadería, la pesca y la fabricación de alimentos y tabaco. El análisis de descomposición revela que la demanda final es la que más contribuye al aumento del empleo turístico, mientras que el progreso tecnológico pasa de ser un efecto de creación de empleo en 2002-2012 a un efecto de destrucción de empleo en 2012-2017.

Originalidad/valor

Este estudio propone un nuevo marco analítico para investigar la relación estructural proporcional entre los efectos directos e indirectos del empleo de varios sectores relacionados con el turismo y sus cambios dinámicos. De este modo, proporciona valiosas referencias para que los responsables políticos promuevan el empleo en el sector turístico.

Article
Publication date: 17 June 2013

Zhang Zhiming, Zhang Xin and Cui Riming

– The purpose of this paper is to measure the effects of WTO accession on the economic growth of China, and the paths of those effects.

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Abstract

Purpose

The purpose of this paper is to measure the effects of WTO accession on the economic growth of China, and the paths of those effects.

Design/methodology/approach

This article carries out a theoretical and empirical analysis on the effect on China's economic growth from WTO accession. First is about the theoretical analysis of the paths of those effects which WTO accession has on China's economic growth. Next is to make empirical test about the effects through dummy variable regression and cross variable analysis.

Findings

WTO accession has a remarkable and a positive effect on China's economic growth through the following specific paths, i.e. foreign trade path, economic system reform path and FDI path. But so far entry into WTO has not positively influenced China's economic growth through technological innovation.

Originality/value

Based on the theoretical and empirical analysis, this article puts forward relative policies and suggestions on what China should do in the future.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 6 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 7 September 2015

Chuanchuan Zhang

The purpose of this paper is to examine the substitute between social old-age insurance and adult children in providing old-age support, and estimate the effects of China’s old…

Abstract

Purpose

The purpose of this paper is to examine the substitute between social old-age insurance and adult children in providing old-age support, and estimate the effects of China’s old rural pension program (ORPP) on sex ratio.

Design/methodology/approach

Using data from China’s 2005 inter-census population survey and China Health and Retirement Longitudinal Study, this paper estimates the effects of children on rural parents’ take-up of pension program and the effects of having access to pension on old parents’ choice of resource for future old-age support. The effects of China’s ORPP on sex ratio are estimated using difference-in-differences identification strategy.

Findings

Peasants having sons are less likely to participate in pension program and each additional son and daughter significantly decreases their likelihood of participation. Moreover, the effect of sons is much larger than that of daughters. Peasants having access to pension are less likely to rely on their children for old-age support. The implementation of the ORPP moderately decreased sex ratio.

Social implications

Implementing pension program in China’s rural area will probably affect rural people’s fertility behavior and thus be helpful in correcting sex ratio bias.

Originality/value

This paper first estimates the effects of having access to pension on old parents’ choices of providers of old-age support, and estimates the causal effect of rural pension on sex ratio using standard DID strategy.

Details

China Agricultural Economic Review, vol. 7 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 14 October 2021

Asif Ali Safeer, Yun Chen, Muhammad Abrar, Nilesh Kumar and Amar Razzaq

The study aims to investigate the impact of perceived brand localness (PBL) and perceived brand globalness (PBG) on brand authenticity (BA) to predict consumers' attitudes toward…

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Abstract

Purpose

The study aims to investigate the impact of perceived brand localness (PBL) and perceived brand globalness (PBG) on brand authenticity (BA) to predict consumers' attitudes toward local and global brands in two Asian markets. Further, the study examines the moderating role of uncertainty avoidance (UA) after controlling the effects of brand familiarity (BF) in Asian markets (China and Pakistan).

Design/methodology/approach

In accordance with the non-probability technique and through an online survey, the study collected 1,880 responses (on local and global brands) from China and Pakistan. Partial least square structural equation modeling (PLS-SEM) is the most robust technique applied to examine the proposed hypotheses in the Asian environment.

Findings

After controlling the effects of BF, the findings revealed that PBL and PBG positively influenced consumers' perceptions of BA, which had a significant impact on consumers' brand attitudes toward both local and global brands in Asian markets. Further, the research identified that BA was an essential mediator from the Asian perspective. The interaction effects of UA and PBL on BA were discovered positively significant in Pakistan, whereas the effects of UA and PBG on BA were found negatively significant in Pakistan and had no effects in China.

Research limitations/implications

The research focused on two Asian countries (China and Pakistan). However, future researchers may collect additional data from other Asian countries in order to generalize the findings in all Asian markets.

Practical implications

The research assists local and global managers in designing and implementing various targeting, positioning and segmentation strategies for successfully managing businesses in Asian markets.

Originality/value

The novel research is based on signaling theory that contributes to the local and global branding domains from the Asian perspective (China and Pakistan).

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 7
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 28 January 2014

Tze-Haw Chan, Hooi Hooi Lean and Chee-Wooi Hooy

– This paper aims to focus on the impact of China's export expansion on Malaysian monthly trading with to her 12 major trading partners over the liberalization era.

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Abstract

Purpose

This paper aims to focus on the impact of China's export expansion on Malaysian monthly trading with to her 12 major trading partners over the liberalization era.

Design/methodology/approach

The analytical framework comprises of both the export and trade balance models. Unit root and cointegration tests with break and error correction modeling are employed in the analyses.

Findings

Regime shifts are evident in the long run where structural break(s) found mostly coincides with the Asia crisis and China's accession into WTO. While the income effects are more apparent in most cases, the real exchanges are rather insignificant and incorrectly signed for Malaysian bilateral trading. Besides, the trade balance estimation is generally more consistent that the Chinese exports have exhibited complementary effects in the long-run, mainly for advanced export destination such as Australia, Germany, Japan, the UK and the USA. On the whole, there is insufficient evidence to support the “PRC competitive threat”.

Practical implications

The empirical evidence disfavors currency devaluation for current account correction and reveals that the fear for China effect might be over-projected. Closer regional collaboration and trade integration between the two nations are well expected.

Originality/value

The paper assesses the China's crowding out effect and magnitudes of Malaysian export and trade balance elasticities with model specifications that consider structural breaks. The paper also assesses the macro dimension of income and real exchanges effects.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 7 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 22 February 2011

Sertan Kabadayi and Dawn Lerman

The purpose of this paper is to investigate the moderating effect of trusting beliefs about a store on country‐of‐origin (COO) effects. The paper suggests that three trusting…

6257

Abstract

Purpose

The purpose of this paper is to investigate the moderating effect of trusting beliefs about a store on country‐of‐origin (COO) effects. The paper suggests that three trusting beliefs (ability beliefs, benevolence beliefs and integrity beliefs) about a retail store moderate negative effects of COO on product evaluation and purchase intention. However, under high manufacturer risk conditions, only benevolence beliefs moderate the negative COO effects.

Design/methodology/approach

The toy industry is chosen as the study context. The first three hypotheses are tested with survey data collected from 224 participants. The last hypothesis is tested with data collected from 338 participants. Hierarchical moderated regression was used in the testing of the hypotheses.

Findings

The results show that while only benevolence and integrity beliefs about a store weaken the negative effect of COO on product evaluations, all three trusting beliefs lessen the negative impact of COO on consumers' purchase intentions. However, when manufacturer risk is high, only benevolence beliefs have a significant moderating effect.

Practical implications

The findings show that manufacturers can reverse the negative cycle, or at least minimize their losses, if they choose those retailers that consumers have high trusting beliefs about as their channel members. Similarly, if they can signal that they are benevolent and honest stores, retailers can balance their customers' negative evaluations of products made in certain countries with negative image.

Research limitations/implications

Given the recent product recalls and concerns, the toy industry presents an ideal case to study the effect of trusting beliefs on COO effects. Nonetheless, the focus on a single industry does limit the generalizability of the findings. The authors recommend that future researchers examine these relationships in studies focusing on other product categories.

Originality/value

To the best of authors' knowledge, this is the first study that investigates the impact of individuals' trusting beliefs about a store on COO effects.

Details

International Marketing Review, vol. 28 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 9 November 2012

Jing Wang and Morley Gunderson

The purpose of this paper is to estimate the impact of minimum wages on employment and wages in China.

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Abstract

Purpose

The purpose of this paper is to estimate the impact of minimum wages on employment and wages in China.

Design/methodology/approach

The paper uses the difference‐in‐difference methodology to estimate the employment and wage impacts of the minimum wage increase in 2003 – a year when substantial minimum wage increases occurred in some provinces (treatment provinces) but not in others (comparison provinces). The analysis is restricted to the eastern region so as to make comparisons across relatively homogeneous and contiguous provinces with large numbers of women and rural migrant workers in urban areas – the target groups for minimum wages.

Findings

The study finds that overall, minimum wages in China do have an adverse employment effect but the effect is statistically insignificant and quantitatively inconsequential. The adverse employment effects are generally larger in the more market‐driven sectors, in the low‐wage sector of retail and wholesale trade and restaurants, and for women; however even these effects are extremely small. Minimum wages also had no impact on aggregate wages. These estimates appear consistent with many of those based on this methodology which tends to find no substantial adverse employment effect from minimum wages.

Practical implications

Good news: minimum wages do not seem to have any substantial adverse employment effect in China. Bad news: this could simply reflect the fact that they are not enforced.

Originality/value

This is one of the few studies of effect of minimum wages in China in English, and using a difference‐in‐difference methodology as first employed by Card.

Details

International Journal of Manpower, vol. 33 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 3 April 2020

Zhijie Guan and Jim Kwee Fat Ip Ping Sheong

The main purpose of this paper is to analyse the different factors affecting Sino-African trade based on the gravity model, and propose some solutions to improve the problems.

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Abstract

Purpose

The main purpose of this paper is to analyse the different factors affecting Sino-African trade based on the gravity model, and propose some solutions to improve the problems.

Design/methodology/approach

The paper is based on an extended gravity model, including trade agreement and recession as explanatory variables. The impacts of trade agreement and economic recession on Sino-African imports and exports are examined.

Findings

The results show that the product of GDP affects African exports to China significantly and negatively, and affects African imports from China positively. Real exchange rate affects African exports to China positively, and affects African imports from China negatively. Population affect African exports to China significantly and positively, and affect African imports from China positively. Recession have negative effects on both African imports from China and exports to China but is only significant for imports. Agreement affects African imports from China and exports to China positively. Our findings confirm the impact of economic recession, and imply that the structure of African product exported to China should be improved, and trade agreements should be reinforced.

Originality/value

This paper contributes and extends the literature on Sino-African trade by improving the traditional gravity model to include the impact of all trade agreements, and their aggregating effects on trade. The paper also seeks to assess the trade impact of economic recession through a dynamic gravity model approach for which there has been no research done to our knowledge. In this regard, it provides new understanding of the trade pattern between China and Africa, and ways in improving the Sino-African bilateral trade.

Details

Journal of Economic Studies, vol. 47 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

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