How do China and the United States Interactively Affect Employment Growth——A Perspective from Global Value Chain Networks

This paper employs transnational input-output analysis and structural decomposition analysis (SDA) to investigate how China interacts with the US in affecting mutual employment growth in the context of global value chain (GVC) networks.We find that the rise in labor productivity exerts negative impact on both countries'employment growths,but changing in technology and division of labor (DoL) as well as rising final demand can lead to more employment.Employment growth in China is primarily driven by changes in final demand,whereas in the US,it is mainly attributable to changes in technology-DoL.The domestic factors in two countries predominantly account for the impacts of technology-DoL and final demand changes on employment.Overall,both countries make positive contributions to each other's employment,but such mutual contributions are asymmetric and heterogeneous for labor characteristics and sectors.The patterns of GVC participation significantly affect two countries'employment growth and structure.This study helps to understand the current trade frictions between China and the US,as well as China's important role in the world economy.