A Study On The Influence Of Cross-strait Trade And Wage Gap

From 1979 when the cross-strait trade started to the present,cross-strait trade has been a great leap forward in the field of international trade in these 30 years. China has become Taiwan's largest trading partner, while Taiwan is mainland's fifth largest trading partner. While the cross-strait economic and trade exchanges develop rapidly, the wage gap of the two sides has shown a synchronous narrow trend. Theoretical studies of changes in trade and wage gap have already formed a relatively systematic theoretical system, such as Ricardo model, SS theorem, Krugman trade model, etc. These theories have great reference value to us to understand deeply the cross-strait trade and the wage gap. Whether the cross-strait trade impacts the wage gap changes? What's the mechanism of its influence ,direction or the size? This paper is to answer these questions.Based on reviewing the related theory of trade affecting the wage gap, this paper uses the method of status analysis and empirical study to proof the impact that cross-strait trade makes to the changes in the wage gap of two sides,and explore how to further enhance cross-strait common welfare through trade. The main research content and ideas are included as follows:(1) According to the development logic of the international trade theory, this paper summarizes systematically all kinds of theoretical models of economic school about trade affecting the wage gap, including the main view points of classical school, trade and income distribution model in neo-classical trade theory, and theoretical model of relationship between trade openness and factor income in new trade theory. Based on summarizing related theory of trade affecting income distribution,this paper summarizes the main mechanism of trade affecting income distribution gap and seeks to analyze the causes of cross-strait trade and the wage gap of the two sides.(2) This paper analyzes deeply the context and the status of the development of cross-strait economic and trade exchanges, and the changes in the wage gap of the two sides. Through describing the realistic background of cross-strait trade and wage gap, it reveals the real foundation and necessity of trade affecting the wage gap.(3) Based on the theoretical research and status analysis in the front part of this paper, it uses panel datas, analyzes the impact that cross-strait trade makes to the changes in the wage gap of two sides, and then obtaines the test results. It also proposes how to further promote cross-strait economic and trade exchanges, and guide the direction and focus of cross-strait trade to improve cross-strait common welfare.The most important feature of this paper is to use a lot of cross-strait economic and trade exchanges and wage data for empirical research, combine quantitative analysis with qualitative analysis, analyze the impact of cross-strait trade and the wage gap of two sides, and propose some countermeasures.