Economics Research

Abstract In recent years China has been appeared as one of the main trading partners of Iran. This study analyzes the effects of trade with China on industrial employment of Iranian economy through panal data methodology and using data of Iranian industrial sector on the basis of 2-digit ISIC of the 1996 to 2011.Results for 22 subsectors show that importing from China reduces total employment level and exporting to china creates job opportunities.Estimates also show import penetration coefficient leads to a reduction in employment of male workers and export penetration coefficient has positive and significant effect on male and female employment levels. Results for 19 subsectors indicate that increasing in import penetration destroys manufacturing employment and the effect of exports becomes insignificantly positive .