Abstract: This paper uses the panel data of industrial firms to estimate the impact of imported inputs on firm employment dynamics in China. Results show that, compared with non-traders, pure-exporters and pure importers, the importers with export business have the largest employment scale, the highest employment growth rate, the most employment creation, the least employment damage as well as the best stability of employment growth; importers with higher share of imported inputs, more imported inputs' varieties, sourcing from lower per-capita income countries, more capital and different inputs experience higher employment growth; the employment growth effect of processing trade is more significant than the general trade; the conclusion is only applicable to the sample of the importers with export business. In the future, China should implement refined differentiated import trade policies, and put a high value on employment growth effect of the importers with export business.
