To upgrade or to relocate? Explaining heterogeneous responses of Chinese light manufacturing firms to rising labor costs

Wang, Fei; Xia, Junjie; Xu, Jiajun

doi:10.1016/j.chieco.2019.101333

Cited by 15 publications

(6 citation statements)

References 10 publications

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“…China's traditional manufacturing industry features labor-intensive companies (Thorbecke & Zhang, 2009), but gradually growing labor costs have pushed many manufacturing firms toward technological upgrading and transformed them into technology-intensive firms. F. Wang et al (2020) discusses labor cost heterogeneity across industrial and firm-specific labor intensity levels. Furthermore, China's labor-intensive manufacturing firms have heterogeneous responses to the association between digitization and ESG performance, because the digitization of manufacturing firms may reduce employee quantity and labor costs in China (Yuan et al, 2021).…”

Section: Methodsmentioning

confidence: 99%

“…China’s traditional manufacturing industry features labor-intensive companies (Thorbecke & Zhang, 2009), but gradually growing labor costs have pushed many manufacturing firms toward technological upgrading and transformed them into technology-intensive firms. F. Wang et al (2020) discusses labor cost heterogeneity across industrial and firm-specific labor intensity levels.…”

Section: Methodsmentioning

confidence: 99%

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Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Wang,

Hong,

Long

2023

Sage Open

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Digital transformation (DT) is a long-term strategy for economic sustainability, particularly for manufacturing-oriented economies. This study proposes a digital ESG (DESG) theoretical framework to investigate how DT empowers ESG performance in the manufacturing industry. Using Python, we collected data from Chinese manufacturing firms from 2009 to 2020. This study used the ordinary least squares method to examine the relationships among DT, ESG performance, and manufacturing ESG heterogeneity. The results suggest that big companies and growing firms pay more attention to their ESG performance than others and that state-owned enterprises are keen on ESG performance but underperform. Additionally, DT may contribute to manufacturing ESG performance in general; labor-intensive and non-state-owned enterprises benefit more from DT than their counterparts; and manufacturers in economically developed regions show more significant ESG performance thanks to DT. These findings support the use of a DESG theoretical framework in the manufacturing industry whereby digital technologies facilitate business production and improve the business profits of manufacturing firms, so that manufacturers have sufficient profits to conduct ESG investments for sustainable development in a virtuous cycle. JEL Classification: O32, O44, Q56

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Wang,

Hong,

Long

2023

Sage Open

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“…Labor-intensive light manufacturing companies could save more on production costs by relocating to low-wage developing countries. Companies with low labor intensity may choose to upgrade their technology [17].…”

Section: Manufacturing Foundationmentioning

confidence: 99%

Drivers of Exports Competitiveness in Manufacturing: A Comparison between China and Germany

Hao

2023

AEMPS

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In recent years, globalization has brought significant development opportunities to various economies worldwide, including influences for export-oriented economies such as China and Germany. This paper examines the export competitiveness of China and Germany in terms of labor market conditions and non-price factors, as well as the impact of China as an emerging economy on German manufacturing export competitiveness. Labor costs, productivity, and market reforms are considered to analyze labor market competitiveness. Non-price competitiveness is examined through explorations of product innovation, quality, and high-tech products. This article found that China's manufacturing export advantage is primarily due to the low labor cost of its workers, and FDI contributes to China's technological and high-tech export advancements. The competitiveness of German exports is attributed to the labor market reforms in Germany and the innovation and high quality of its products. On the other hand, wage inequalities exist in both China's and Germany's manufacturing industries. The study also finds that while emerging economic giant China has gained significant export market share, Germany can remain competitive.

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“…In 2001, China joined the WTO. Foreign currency flows into China, leading to the opening up of the Chinese market to foreign competitors (Wang et al, 2020a ). Today, the majority of foreign investment is made up of thousands of foreign manufacturers, joint ventures, or companies.…”

Section: Introductionmentioning

confidence: 99%

Revitalization of Chinese’s manufacturing industry under the carbon neutral goal

Beraud

Zhao

2022

Environ Sci Pollut Res

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Since the beginning of the Industrial Revolution, the manufacturing industry has been crucial for economic growth. China’s manufacturing activity began after China approved and opened legal reform to the rest of the world in 1978. There are usually three stages of development, including the catch-up period. At the same time, they reflect the private economic sector, manufacturing, and foreign exchange industries, and the opening up to the international markets. This advancement comes along with high energy consumption, leading to a high rate of pollution. Therefore, this study provides a detailed overview of the “Made in China 2025” pilot target and implementations of policies to achieve a carbon-neutral goal. We assessed the efficiency of implementing policies in the Chinese manufacturing sector and recommended decision-making policies to achieve the “Made in China 2025” plan and the 2030 carbon-neutral goal. The Quantitative Strategic Programming Matrix (QSPM) and SWOT analysis matrix were used to put forward some development strategies to transform and upgrade China’s manufacturing industry by combining relevant strategic theories. This study is significant in terms of energy-saving and carbon emission-reducing policy implementations for the Chinese manufacturing industry. In addition, we suggested some measures to achieve a sustainable environment in line with carbon-neutral policies.

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To upgrade or to relocate? Explaining heterogeneous responses of Chinese light manufacturing firms to rising labor costs

Cited by 15 publications

References 10 publications

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Digital Transformation Empowers ESG Performance in the Manufacturing Industry: From ESG to DESG

Drivers of Exports Competitiveness in Manufacturing: A Comparison between China and Germany

Revitalization of Chinese’s manufacturing industry under the carbon neutral goal

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