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Volume 58 Issue 5
May 2026
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    Citation: CHENG Dazhong, LIU Xiaoyu and WANG Yi'nan. How do China and the United States Interactively Affect Employment Growth——A Perspective from Global Value Chain Networks[J]. Academic Monthly, 2026, 58(5): 39-52. shu

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

    • Abstract

      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.
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      1. [1]

        SHEN Yifei . Theoretical Genealogies of the Emotional Economy and the Chinese Context. Academic Monthly, 2026, 58(7): 129-142.

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        ZHANG Jun ,  FANG Hongsheng . Intergovernmental Fiscal Relations and Economic Growth. Academic Monthly, 2026, 58(8): 70-90.

      3. [3]

        LIU Wei . Several Important Theoretical Issues Needing Further Clarification for the Growth and Expansion of the Private Economy. Academic Monthly, 2026, 58(7): 41-53.

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        LI Ting . From The Reproductive Institution to the Fertility Transition in Contemporary China. Academic Monthly, 2026, 58(7): 143-156.

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        HE Jun . Confucius's Paradigm Shaping of Chinese Philosophy. Academic Monthly, 2026, 58(8): 56-69.

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        LIN Shangli . China's Mission in Constructing Original Theories and Its Methodological Foundation. Academic Monthly, 2026, 58(7): 5-11.

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        HU Jun . Three Dimensions of Aesthetic Value from the Perspective of Neuroaesthetics——On the Essence of Beauty and Other Issues. Academic Monthly, 2026, 58(8): 184-194.

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        SUO Liming ,  WEI He'ning . Platform Transition: The Re-Evolution of Network Governance Model. Academic Monthly, 2026, 58(7): 90-103.

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        ZHAO Lin ,  ZHANG Boyu ,  LIANG Hua . The Relationship Between Monopoly and Innovation in Information Product Markets——A Growth Network Perspective. Academic Monthly, 2026, 58(7): 64-76.

      10. [10]

        WANG Gang . Viewing the Cultural Intent of the “Xueheng School” from Hu Xiansu's Teachers and Friends's Group. Academic Monthly, 2026, 58(7): 206-216.

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

          Abstract: 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.

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