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

DOI

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.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - Proceedings of the 2014 2nd International Conference on Advances in Social Science, Humanities and Management
PB  - Atlantis Press
SP  - 504
EP  - 508
SN  - 2352-5398
UR  - https://doi.org/10.2991/asshm-14.2014.141
DO  - 10.2991/asshm-14.2014.141
ID  - Junwei2014/12
ER  -