Business Report

High job creation expectation in China

Name Mohamed Fahad Ahmed

Student number 500788912
Education International Business
Lecturer name Boruc Kör
School year 2018-19
Date 17/02/2019
Executive summary
China has one of the largest economies in the world and world’s largest exporter, also second largest
importer. China is one of the largest emerging market economies in the world, both in terms of
population and total economic product. China makes and sell more manufacturing goods than any other
country on the planet. Most of the people are moving towards service workforce which is creating more
option for entrepreneur. This research based on one question which is: How did high job creation
expectation developed in China from 2012 to 2017? Research methodology is the key fact of this
research, because finding right information and action is very important for research. This research
stated with secondary data which is collected from GEM and World Bank. The purpose of the research is
descriptive. The research interference is minimal and study setting is non-contrived. The unit’s analyses
will be individual and time horizon is multi-cross sectional. The mean of the china and Netherlands are
23.473, 15.405 respectively. The mean of China is higher than Netherlands. In 2012. The GDP
growth(annual%) was 7.758 in China and it decreased to 6.9 in 2017. The correlation coefficient is
moderate negative correlation which is -0.56495 between GEM and world indicators. The high job
creation expectation is increasing. However, GDP growth is up and down over last few years. Despite of
the fact, in china improving in lots sector through the years.

Contents
1.Introduction ............................................................................. 3
 1.1 Background ........................................................................ 3
2.Methodolgy ............................................................................. 5
2.1 Introduction ....................................................................... 5
2.2 GEM data............................................................................ 6
2.3 World Bank data................................................................. 6
2.4 Method of analysis ............................................................. 7
2.5 Conclusion .......................................................................... 7
3. Analyses .................................................................................. 8
3.1 Introduction ....................................................................... 8
4.Conclusion ............................................................................. 11
Bibliography .............................................................................. 12

1.Introduction

1.1 Background
This research report is about high job creation expectation in China from 2012 to 2017. China have one
of the largest economies in the world. “China is also the world's largest exporter and the second largest
importer, and it contains the fastest-growing consumer market. Major industries include manufacturing,
agriculture and telecommunication services.” ("Wikipedia-China", n.d.-b,2019) China have also huge
labor force which are helping the country’s economic growth. That’s the reason why I chose China for
my research.
1.2 Country description

“China is a populous nation in East Asia. China have the largest population in the world and total amount
of population are 1.404 billion. China is the third or fourth largest country in the world. The capital of
china is Beijing and largest city is Shanghai. There are as many as 292 living languages in China. The
main language is Mandarin and 70% of population speaks this language. Another language is Cantonese
which is also known as a famous Chinese language.” ("Wikipedia", n.d.-b) “China is one of the largest
emerging market economies in world, both in terms of population and total economic product.”
(Statista, z.d.) The present president of china is Xi Jinping and His party name is Communist party of
China. “China has the lowest unemployment rate from 2012 to 2017. “The stats show that they had
around 4 percent unemployed people from 2012 to 2017 in China.” ("Unemployment rate 2012-2023 |
Statistic", z.d.-b,2019) The workforce helping them to became one of the largest economies in the
world. “The main exports products are Cotton, Tea, Rice and potatoes. China also exports electric
machinery, equipment.” ("China’s Top Commodity Imports & Exports", 2019)

1.3 Problem analysis

China have one of the strongest economic for long period. “China makes and sells more manufacturing
goods than any other country on the planet. In 2015, manufacturing is the largest and most diverse
sector in the country.” (Sean Ross, 2015b) “In 2012, China’s GDP was $8.561 trillion. The GDP were
increased to $12.24 trillion in 2017.” (“Wikipedia, economy of china,2019) China GDP is increasing every
year because of their entrepreneurial environment. Most of the people are moving to service workforce
which is creating more option for entrepreneur. The local and foreign entrepreneur are more willing to
invest in china. “In 2012, The percentage of the people worked in services sector were 36.1% and the
percentage of people worked in services sector were 44.9% in 2017.” (Statistic", z.d.-b,2019) China is
taking advantages of the population of the country. It has been working for them. China is already
successful in manufacturing sector.

China’s future plan is becoming most successful manufacturing country in the world. “The aim of
Chinese leaders that they want to give the country a nice 100th birthday present by becoming the
world’s top manufacturer in the year 2049. They target ten key sectors to drive the economy. Chinese
government are trying to move from low tech to high tech manufacturing. The Chinese government is
making short work of improving the private sector by spending more on high-quality research. This helps
to transition out a cheap and low-tech export-oriented economy. In 2025, china wants to become a
manufacturing powerhouse. Their plan is becoming a middle-level player among the strongest
economies in 2035 and become a leading manufacturing power in 2049.” (Peter Pham, 2018)
There are many problems in job or work sector in china. In China, finding a decent job in very hard.
“Most of the Chinese workers does not have any proper work contract or benefits like pension or health
insurance, a condition shared by tens of millions of workers in China’s informal labour market. There are
many ethical issues in China in working sector. Most of the higher managerial jobs are routinely reserved
for the men because they have fewer family commitments than women.” (Chinafile, 2018)
The consequence of this problem could fall down the GDP growth. Because the people always buy or
invest where have ethical perspective of the work sectors. Nowadays it has become main point before
starting a business or invest money in the country. It could damage the reputation of the company.

1.4 Research Question

How did high job creation expectations developed in China between 2012 to 2017?

1.5 Organization of report

In the second part of this report about methodology. Chapter 3 there will be analysis about
methodology and the report. The 4th will be conclusion and the last part is about reference.

2.Methodolgy

2.1 Introduction
In this chapter Methodology will be explained. There are data collected from GEM and world bank data
which is for research purpose. Furthermore, there are information which research design and secondary
data sets used.
“Methodology is the systematic, theoretical analysis of methods applied to a field of study. It comprises
the theoretical analysis of the body of methods and principles associated with a branch of knowledge.
Typically, it encompasses concepts such as paradigm, theoretical model, phases and quantitative or
qualitative technique.” (Methodology, 2019)
“The process used to collect information and data for the purpose of making business decisions. The
methodology may include publication research, interviews, surveys and other research techniques, and
could include both present and historical information.” (Research Methodology , 2019).
“The purpose of the methodology is making choices and create a design that is suitable for the job at
hand. The quality of a research design depends how carefully you choose the appropriate design
alternatives, taking into consideration the specific objectives, research questions, and constraints of the
project, such as access to data, time, and/or money.” (Sekaran&Bougie, The research design, 2013)

2.2 GEM data

“The Global Entrepreneurship Monitor (GEM) is the world's foremost study of entrepreneurship. GEM is
a trusted resource on entrepreneurship for key international organizations like the United Nations,
World Economic Forum, World Bank, and the Organization for Economic Co-operation and Development
(OECD), providing custom datasets, special reports and expert opinion. These important bodies leverage
GEM's rich data, tried-and-tested methodology and network of local experts to promote evidence-based
policies towards entrepreneurship around the world.

In numbers, GEM is:

20 years of data
200,000+ interviews a year
100+ economies
500+ specialists in entrepreneurship research
300+ academic and research institutions
200+ funding institutions.
In each economy, GEM looks at two elements:
 The entrepreneurial behavior and attitudes of individuals
 The national context and how that impacts entrepreneurship. (What is GEM?, 2019)
The purpose of the study is descriptive. GEM’s extent of research interference is Minimal. The study
setting is non-contrived. The research strategy GEM follow are survey and questionnaire. The units of
analyses by individuals. The time zone of GEM is multi-cross sectional. The data has been used for this
research which is High job creation expectation in china between 2012 to 2017.China has one of the
fastest growing economy in the world. GEM is trustworthy source that’s the reason choosing data from
this website.

2.3 World Bank data

“The World Bank, the Development Data Group coordinates statistical and data work and maintains a
number of macros, financial and sector databases. Working closely with the Bank’s regions and Global
Practices, the group is guided by professional standards in the collection, compilation and dissemination
of data to ensure that all data users can have confidence in the quality and integrity of the data
produced. The World Bank works to help developing countries improve the capacity, efficiency and
effectiveness of national statistical systems. Without better and more comprehensive national data, it is
impossible to develop effective policies, monitor the implementation of poverty reduction strategies, or
monitor progress towards global goals.
The world bank collects their data through survey and questionnaire. Most of the data comes from the
statistical system of their member countries and the quality of global data depends on how well these
national systems perform. The data world bank collects which is secondary data. The sources of data are
professional in form of research which are countries economy and cultural experts. The purpose of the
World Bank is descriptive. The extent of research interference is minimal. The study setting is non-
contrived. The research strategies World bank used to collect data is survey research. The units of
analyzed by individuals. The time horizon is multi-cross sectional. The data has been used in this
research which is GDP growth (annual%) in china from 2012 to 2017. China has one of the largest GDP
and it is growing fast. The world bank tries to provide information about certain situation and with data
those country can work on improving the situation. The world bank has exact data which is perfect. ”
(About us, 2019)

2.4 Method of analysis

The research design adopted in this report is secondary data which collected by survey research. the
data collected from different sources which is done with minimal interference of the research. The study
setting will be non-contrived which is done in a natural environment. The unit analyses will be
individuals per country because the research will be about the statistics of the chosen country. The time
horizon of this research will be multi-cross sectional, because the data measured will be at multiple
points and use of different sample. (Sekaran&Bougie, Elements of research design, 2013/2016)
The data sets are secondary data which is quantitative. The descriptive statistics has been adopted for
quantitative analyses.” Descriptive statistics for a single variable are provide by frequencies, measure of
central tendency and dispersion. Furthermore, correlation analyses will apply to this research. A Pearson
correlation matrix will indicate the direction, strength, and significance of the bivariate relationships
among all the variables that were measured at an interval or ration level. Theoretically, there could be a
perfect positive correlation between two variables, which is represented .” (Sekaran&Bougie,
Quantitative data analysis, 2013/2016)

2.5 Conclusion

In this chapter the methodology was discussed and how it was related to this research. Methodology is a
system which can apply for field study. The data collecting techniques of methodology are qualitative or
quantitative. Below you can see a summarizing figure of how the research is made together with the
measurement, collection and analysis of data.
 Purpose of extent of research Study setting Units of Time horizon
the study interference analysis
Correlation to high job creation expectation

Descriptive Individuals Multi-cross

Minimal Non-contrived
sectional
Data
analysis

Research Sample Feel for

strategy design data
expectation

Secondary
Probability
data

3. Analyses

3.1 Introduction
The analyses will be explained in this chapter. There is two GEM variables and one World bank
data variables. Each of GEM variables are same time period and indicators, but the countries
are different which are China and Netherlands. The mean will be compared between those two
countries. The World bank data variables has been same time period and same country, but the
indicators are different. Finally, the correlation between high job creation expectation and GDP
growth (annual%) of China will be explained.
3.2 Descriptive analysis GEM variable

GDP growth (Annual%)

40

35

30

25

20

15

10

0
2011 2012 2013 2014 2015 2016 2017 2018

Figure 1: High job creation expectation in China between 2012 and 2017. Source: (GEM, 2019)

“The high job creation is Percentage of those involved in TEA who expect to create 6 or more
jobs in 5 years.” (Entrepreneurial behaviou and attitudes , 2019) As can be seen in Figure 1, the
high job creation expectation in China and Netherlands from 2012 to 2017 from GEM. The GEM
variables were chosen for the research purpose. The GEM variables are trustworthy. The reason
of choosing Netherlands is compare the mean between those countries. The percentage of high
job creation expectation in china was 18.23 in 2012. After that the number increased to 22.94
in 2013. The percentage went down for the very next year which was 13.65. Fortunately, the
amount of percentage increased almost tripled in 2015 and the number was 35. In 2016 and
2017, respectively the percentage were 26.7, 24.32. The percentage of the GEM measure scale
is interval. The mean of the China is 23.473, on the other hand the mean of Netherlands is
15.405. The mean of China is higher than Netherlands.

3.3 Descriptive analysis World Bank variable

 GDP growth (Annual%)
8

7.8

7.6

7.4

7.2

6.8

6.6
2011 2012 2013 2014 2015 2016 2017 2018

Figure 2: GDP growth (Annual %) in China from 2012 to 2017. Source: (The World Bank, 2019)

“The OECD defines GDP as "an aggregate measure of production equal to the sum of the gross
values added of all resident and institutional units engaged in production (plus any taxes, and
minus any subsidies, on products not included in the value of their outputs). An IMF publication
states that "GDP measures the monetary value of final goods and services—that are bought by
the final user—produced in a country in a given period of time (say a quarter or a year)." (Gross
domestic product, 2019)
As can be seen in Figure 2, the GDP growth of China were decreasing over the year. The
percentage of GDP growth was 7.856 in 2012 and it slightly decreased in 2013 which was 7.758.
The percentage were dropping down at 7.298, 6.9, 6.7 in 2015, 2016, 2017 respectively. The
percentage slightly went up to 6.9 in 2017. The World bank variables are ratio.

3.4 Correlation analysis

 8
7.8
GDP Growth

7.6
7.4
7.2
7
6.8
6.6
0 5 10 15 20 25 30 35 40
High Job Creation Expectation

Figure 3: Correlation between High Job Creation Expectation and GDP growth. Source: (The
World Bank, 2019) (GEM, 2019)

“A Pearson correlation matrix will indicate the direction, strength, and significance of the
bivariate relationships among all the variables that were measured at an interval or ratio level.
The correlation is derived by assessing the variations in one variable as another variables also
varies.” (Sekaran&Bougie, Quantitive data analysis, 2013) In Figure 3, the correlation analyses
have been done with two indicators from the GEM and the World bank data. The correlation
between coefficient between the high job creation expectation and the GDP growth (annual%)
of China is -0.56495. This result of the correlation coefficient is moderate negative correlation
between those indicators.

4.Conclusion
The report based on one question which is: How did high job creation expectations developed in China
between 2012 to 2017?

Regarding the problem statement, China has been improving on high job creation expectation because
of China’s entrepreneurship has been increasing. In China, finding a decent job is very difficult. “Most of
the Chinese workers does not have any proper work contract or benefits like pension or health
insurance, a condition shared by tens of millions of workers in China’s informal labour market. Thus, it
was important to put the light on that question.” (Geoffrey Crothall, 2018)

The author of this report claims that, the high job creation expectation is helping the GDP growth. As
earlier mentioned, China has very good rates in high job creation expectation, but it’s not helping to
their GDP growth. “Most of the people are moving towards service workforce, because of that China has
created more option for entrepreneur. The local and foreign entrepreneur are more willing to invest on
which is creating more option high job creation expectation.” (Distribution of the workforce across
economic sectors in China 2017, 2019)

Furthermore, the correlation analyses are moderate negative which is proving that High job creation
expectation is not helping the GDP growth. However, the high job creation expectation ratio scale is
increasing every year. Unfortunately, the GDP growth ratio is low for last few years.

Bibliography
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