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Economic Development, Institutional Environment and Employment Growth:Investigation Based on Inter-provincial Data |
GUI Bin wei,CHEN Yu feng |
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Abstract Based on the industry data of the manufacturing sector in 30 provinces, the article investigates the effects of economic development, institutional environment to the employment absorption capacity of investment with panel data analysis. The employment absorption capacity of investment is determined by industrial employment intensity and employment bias of investment. Empirical analysis shows that economic development has negative impact on employment intensity, positive impact on employment bias of investment, and non-significant negative impact on employment absorption capacity of investment. The improvement of the institutional environment has positive impact on employment intensity, employment bias and employment absorption capacity of investment. This shows that regions can promote employment growth by improving the institutional environment.
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Received: 02 May 2012
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Corresponding Authors:
CHEN Yu feng
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