The Vertical Labour Division Within EU And Its Enlightenments To Our Country

In 2004, ten countries from middle-east Europe joined the EU, which indicated that the course of the European integration had reached up to a new point. The middle-east European countries held much hope for the future; they always believe their economy could get rapid development under the leadership of EU. For this purpose, ten middle-east European countries began their efforts ten years ago. In the field of politics, they admired democracy, while in that of economy they carry out free market policies. The transition to the market economy system is a painful course with their economy lever backing up to that of more than ten years ago. Now the middle-east European countries eventually join the EU as they always wish, but would they be rewarded for what they have paid? No unanimous agreement has been reached because there are many criteria to weigh the cost and benefit of joining EU. This article analyzes the effect to the under-developing countries, including ten middle-east European countries, from the view of vertical labour division. Instead of the reasons and specific content of the vertical labour division, this article put its most emphasis on the industry shifting and the possible trend of the vertical labour division system. In the vertical labour division system, developed countries would like to export its low-lever industries or part of work to the under-developing countries, so as to achieve its world target. And the under-developing countries would like to import those for the sake of economy. Though those industries seem as low-lever to the developed countries, they might be high-lever to the under-developing ones and will likely to explore their advantage of labour and make them deal with the world labour division more effectively. To the core-periphery,if let the international trade and labour division take their ways, a core and periphery pattern will come into being. This idea is introduced into the EU and bring up with the conclusion that, under the restriction of the free market competition mechanism and the joint policies within EU, the vertical labour division system is stable and the under-developing countries can hardly improve their status, which then leads to various negative effects——and it is the creative part of this article. Now the economic globalization and area integration has become the irreversible trend, and the open degree of our country is deeper. As an under-developing country and being in the disadvantageous status, how to benefit from the world labour division and avoid the uncomfortable effect is a challenge to us. Since opened the domestic market, we take trouble to import the labour industries for Japan and the four dragon countries of East Asia, and has achieve great success. However, when comparing with the developed countries, there are problems. Though we export has reach a larch quantity, the most part of profit is robbed by the developed countries because of the low industry lever and lack of famous brand, patent. The fact is that our country is becoming the peripheral country in the word labour division system. The analysis of the vertical labour division within EU will provide us ideas about how to avoid this disadvantageous result, then lead to the well-understanding of our conditions and appropriative measures. Besides the introduction, this article includes four main parts. The first chapter introduces the theories. First, it explains the vertical labour division and its classification, and then states the theory of theories of vertical labour division. Second, it introduces the theories of the industry shifting. Third it suggests that if a country wants to improve its statues within the vertical labour division system, there are four important factors, that is, independence of domestic economy, advance of science and technology, advantage of sources and correct industry policies. The second chapter discusses the specific situation of vertical labour division within EU. It simply describes the specific content of division, and pays most attention to discus...