Abstract The paper researches the impact of labor cost rising on local economic growth by the Stockhammer-Ederer model econometric analysis. It is found that labor cost rising has a negative effect on investment and a significant positive effect on resident consumption, which will significantly push the total output and economic growth in Jiangxi Province. The pulling effect of labor cost rising on domestic demand shows “U” type change trend. Therefore, the Government should take positive measures to the opportunities and challenges of rising labor costs on economic development adjust economic structure and transform economic growth patterns.
2013, Vol. 1 
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