Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing
This article investigates the microeconomics of employment dynamics, using a Chinese manufacturing firm-level data set over the period 1998-2007. It does so in the light of a scheme of "circular and cumulative causation," whereby firms' heterogeneous productivity gains, sales dynamics...
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| Format: | Article |
| Language: | English |
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Oxford University Press
2019
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| Online Access: | https://eprints.nottingham.ac.uk/56686/ |
| _version_ | 1848799364984602624 |
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| author | Dosi, Giovanni Yu, Xiaodan |
| author_facet | Dosi, Giovanni Yu, Xiaodan |
| author_sort | Dosi, Giovanni |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This article investigates the microeconomics of employment dynamics, using a Chinese manufacturing firm-level data set over the period 1998-2007. It does so in the light of a scheme of "circular and cumulative causation," whereby firms' heterogeneous productivity gains, sales dynamics and innovation activities ultimately shape the patterns of employment dynamics. Using firm's productivity growth as a proxy for process innovation, our results show that the latter correlates negatively with firm-level employment growth. Conversely, relative productivity levels, as such a general proxy for the broad technological advantages/disadvantages of each firm, do show positive effect on employment growth in the long-run through replicator-type dynamics. Moreover, firm-level demand dynamics play a significant role in driving employment growth, which more than compensate the labor-saving effect due to technological progress. Finally, and somewhat puzzlingly, the direct effects of product innovation and patenting activities on employment growth appear to be negligible. © The Author(s) 2018. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved. |
| first_indexed | 2025-11-14T20:34:30Z |
| format | Article |
| id | nottingham-56686 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:34:30Z |
| publishDate | 2019 |
| publisher | Oxford University Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-566862020-08-01T04:30:13Z https://eprints.nottingham.ac.uk/56686/ Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing Dosi, Giovanni Yu, Xiaodan This article investigates the microeconomics of employment dynamics, using a Chinese manufacturing firm-level data set over the period 1998-2007. It does so in the light of a scheme of "circular and cumulative causation," whereby firms' heterogeneous productivity gains, sales dynamics and innovation activities ultimately shape the patterns of employment dynamics. Using firm's productivity growth as a proxy for process innovation, our results show that the latter correlates negatively with firm-level employment growth. Conversely, relative productivity levels, as such a general proxy for the broad technological advantages/disadvantages of each firm, do show positive effect on employment growth in the long-run through replicator-type dynamics. Moreover, firm-level demand dynamics play a significant role in driving employment growth, which more than compensate the labor-saving effect due to technological progress. Finally, and somewhat puzzlingly, the direct effects of product innovation and patenting activities on employment growth appear to be negligible. © The Author(s) 2018. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved. Oxford University Press 2019-02-28 Article PeerReviewed application/pdf en https://eprints.nottingham.ac.uk/56686/1/Technological%20catching-up%2C%20sales%20dynamics%2C%20and%20employment%20growth%20Evidence%20from%20China%27s%20manufacturing.pdf Dosi, Giovanni and Yu, Xiaodan (2019) Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing. Industrial and Corporate Change, 28 (1). pp. 79-107. ISSN 0960-6491 Employment Growth; Demand; Product Innovation; Process Innovation; Export; China catching-up http://dx.doi.org/10.1093/icc/dty023 doi:10.1093/icc/dty023 doi:10.1093/icc/dty023 |
| spellingShingle | Employment Growth; Demand; Product Innovation; Process Innovation; Export; China catching-up Dosi, Giovanni Yu, Xiaodan Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing |
| title | Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing |
| title_full | Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing |
| title_fullStr | Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing |
| title_full_unstemmed | Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing |
| title_short | Technological catching-up, sales dynamics, and employment growth: evidence from China’s manufacturing |
| title_sort | technological catching-up, sales dynamics, and employment growth: evidence from china’s manufacturing |
| topic | Employment Growth; Demand; Product Innovation; Process Innovation; Export; China catching-up |
| url | https://eprints.nottingham.ac.uk/56686/ https://eprints.nottingham.ac.uk/56686/ https://eprints.nottingham.ac.uk/56686/ |