ABSTRACT
This paper quantifies China’s employment creation in ASEAN and Japan, South Korea, and Taiwan (ASEAN + JKT) during 1990–2013 through exports to China, using the global input-output table from the EORA database. We apply the technique proposed by Los, Timmer, and de Vries (2015, Journal of Comparative Economics) and find that the employment effect of China is growing at the annual growth rate of 11% during the period and leading to employment compensation of 234 billion USD in 2013, which is equivalent to 6.5% of the total employment compensation and 1.7% of the total GDP in the ASEAN + JKT area. This impact of China’s final demand implied from the decomposition is similar to that from the hypothetical extraction technique by Los, Timmer, and de Vries (2016, American Economic Review). We further unpack the employment effect of China into the contribution from tariff cuts and China’s final demand per se. The result shows that roughly 10%-20% and 75% of the employment effect of China’s demand on ASEAN + JKT come from tariff cuts and China’s final demand, respectively.
