ANALYSIS OF INDUSTRY COMPETITIVENESS: AN EMPIRICAL EXAMINATION OF THE ROLE OF LABOUR COST

This paper investigates the relationship between labour cost and industry competitiveness using a long panel data of provinces in China. We find that, low labour cost, low commodity price and high energy consumption is the develop mode of China industry which brings in insufficiency demand and low consuming, a negative correlation is found between labour cost and industry competitiveness, technology can reduce Chinese economy dependence on labour cost, government should establish some policies to raise the income of workers and enhance the investment of science and technology.