How Skill-Biased Technical Change Sustains China’s Comparative Advantage
Liang Junwei, Wang Jie
Available Online December 2014.
- https://doi.org/10.2991/asshm-14.2014.141How to use a DOI?
- Skill-Biased Technical Change, Trade Surplus, Wage Inequality, China
- 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.
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 -