The Drivers of Employment Manufacturing Growth

In this paper, we analyze the evolution of China’s production structure.
Through the use of a subsystem approach and world input-output
tables, we assess the role played by domestic and foreign final demand
in the Chinese manufacturing subsystem. The results indicate that the
importance of domestic demand has increased since the years of the
crisis, forming a U-shape over the period. The dependence on foreign
demand remains crucial for high-tech subsystems, and the medium
high-tech subsystems are central to the growth of domestic demand.
In addition, final demand and labor intensity play a significant role in
employment growth.