%0 Journal Article %T The Effect of Processing Trade on Employment: in Case of China %A Yanjing Chen %J Modern Economy %P 61-67 %@ 2152-7261 %D 2012 %I Scientific Research Publishing %R 10.4236/me.2012.31009 %X In this paper, we use panel data from 2002 to 2008 on China¡¯s 31 provinces to analyze the effect of processing trade on regional employment. The results give evidence that processing trade has a significant and positive skill-bias effect on regional employment. Hereinto, processing import, including PIM and PSM import, especially the capital goods import by processing trade, is the root of the skill-bias effect of processing trade on employment. Net processing export is a driving to expand employment, including the skilled and the unskilled. But only PIM contributes to it. %K Processing Trade %K Employment %K Skill-Bias Effect %K China %U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=16838