| Summary: | This paper calculated the extensive margin, price margin and quantity margin of trade growth between China and Japan during 2000-2018, and analyzed the impact of rising labor costs on trade between China and Japan based on the perspective of ternary margins. The results show that the rising labor cost has both positive and negative effects on the growth of China’s export to Japan, also has different effects on different kinds of products. Specifically, there are significant positive effects on the extensive margin of animal and plant products and textile products, the price margin of chemical products and the quantity margin of textile products. The Government should formulate relevant policies, make the labor factors have reasonable distribution, and promote the long-term and stable development of trade between China and Japan.
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