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 AJIBM  Vol.2 No.4 , October 2012
Services Trade and Labor-Demand Elasticities of Service Sector: Empirical Evidence from China
Hao Wei*, Qiang Fu, Sui Yang
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Abstract: This paper analyses the impact of services trade on the labor-demand elasticities of service sector with the data of China from 1982 to 2009.we find that: 1) First, no matter in the long run or in the short term, China’s services export distinctly impacts on the labor-demand elasticities of service sector. In the long-term influence, the substitution effect is much more powerful than the output effect, however, as to the short period, the output effect is a little stronger than the substitution effect; 2) Second, in the long run, we cannot reject the hypothesis of no relationship between service import openness and the labor-demand elasticities of service sector. Whereas, studying the result of the short term, trade liberalization of services import does affect the service sector labor-demand elasticity weakly.
Keywords: Trade Liberalization; Labor-Demand Elasticities; Service Sector; Substitution Effect; Output Effect
Cite this paper: H. Wei, Q. Fu and S. Yang, "Services Trade and Labor-Demand Elasticities of Service Sector: Empirical Evidence from China," American Journal of Industrial and Business Management, Vol. 2 No. 4, 2012, pp. 136-144. doi: 10.4236/ajibm.2012.24018.
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