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JOURNAL OF MANAGEMENT POLICY AND PRACTICE


Investigating Causality Effect among Labor Productivity Growth and Industrialization, Urbanization, Globalization in China


Author(s): Xiaobo Fang, Minoo Ghoreishi, Jianfeng Wang

Citation: Xiaobo Fang, Minoo Ghoreishi, Jianfeng Wang, (2018)"Investigating Causality Effect among Labor Productivity Growth and Industrialization, Urbanization, Globalization in China," Journal of Management Policy and Practice, Vol. 19, Iss. 3, pp. 117-128

Article Type: Research paper

Publisher: North American Business Press

​Abstract:

This study seeks to empirically test Granger-causality among China’s labor productivity (LBP) growth
and industrialization (IND), urbanization (URB), globalization (GLB). It examines IND – the proportion of non-agricultural sectors to Gross Domestic Product (GDP), GLB – measured by foreign direct investment (FDI) and the total value of imports and exports (VIE), and URB – measured by the
proportion of urban population. Data are taken from the published China national database. Unit root
and Johansen Cointegration tests are deployed to test the stationary and cointegration of the variables.
The results reveal that LBP growth is determined by the level of IND, URB, and GLB.