A study on the relationship between labor mobility and the development of tertiary industry

Absztrakt (kivonat)

Economic development is an essential research object of economics theory. The common goal of many economists is to solve problems of economic development and to realise the wealth of nations. According to the analysis of Solow model, labour has played a crucial role in economic development, and is closely related to the tertiary industry. This paper, by analysis of China's tertiary industry development status, aims to understand those factors influencing the development of China's tertiary industry or determining labour mobility, and to find out interactions between labour mobility and the tertiary industry, plus the efficient route of China’s economic sustainable development. Labour mobility influences the development of tertiary industry which reversely affects labour mobility between the regions. Based on the New Economic Geography, this paper uses the simultaneous equation to analyse the influence factors of the labour mobility and the tertiary industry, and analyse the endogeneity between labour mobility and the tertiary industry with China’s provincial panel data from 2012-2015. Firstly, this paper sorts out the related theory and literature of labour mobility and the development of tertiary industry and finds the endogeneity between labour mobility and development of the tertiary industry. Then this paper analyses the status of labour mobility and the development of the tertiary industry. Finally, this article constructs simultaneous equations model and investigates the effective relationship between labour mobility and development of the tertiary industry through empirical analysis. By solving the simultaneous equations model, this paper analyses the relation between labour mobility and development of the tertiary industry. With the analysis of labour mobility and development of tertiary industry, this paper shows that the economic income, the development of the tertiary industry and economic opening are the main reasons to attract labour. With the increasing of the rural net income and the decreasing of the gap between urban and rural areas, labour mobility is reduced. Capital, labour and market factors promote the development of the tertiary industry. The policy controlling obstructs the development of the tertiary industry, and the urbanization strategy in 5 different development stages of the various regions has different effects; because of the interaction of the labour mobility and the tertiary industry, labour gathers in the east and disperses in the middle and western regions.