Proceedings of the 2014 2nd International Conference on Advances in Social Science, Humanities and Management

How Skill-Biased Technical Change Sustains China’s Comparative Advantage

Authors
Liang Junwei, Wang Jie
Corresponding Author
Liang Junwei
Available Online December 2014.
DOI
https://doi.org/10.2991/asshm-14.2014.141How to use a DOI?
Keywords
Skill-Biased Technical Change, Trade Surplus, Wage Inequality, China
Abstract
The sustaining trade surplus in China has arrested more and more attentions and concerns. The industrial structure upgrading and wage rise should have kept down the trend of comparative advantage and surplus growth, but unfortunately in vain. This paper presents a theoretical framework, which is explaining the reason from SBTC induced along by FDI. In the short run, taking some outsourcing linkage home will increase the skill demand, while in the long term, skill supply will increase since the wage rise will incentive the edge skill labour, and therefore, the skill premium increase will be suppressed, comparative advantage and trade surplus sustained.
Open Access
This is an open access article distributed under the CC BY-NC license.

Download article (PDF)

Cite this article

TY  - CONF
AU  - Liang Junwei
AU  - Wang Jie
PY  - 2014/12
DA  - 2014/12
TI  - How Skill-Biased Technical Change Sustains China’s Comparative Advantage
BT  - 2014 2nd International Conference on Advances in Social Science, Humanities, and Management (ASSHM-14)
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/asshm-14.2014.141
DO  - https://doi.org/10.2991/asshm-14.2014.141
ID  - Junwei2014/12
ER  -