Research On China's Income Gap Under The Trade Liberalization

As is well known that trade liberalization is the world's economic development an irreversible trend. Trade liberalization benefits of the economic problems have been well received by scholars of concern and research. Specific to a country run by promote trade liberalization process is not only the country's overall economic welfare, but also the country's income distribution patterns and income disparities have an impact. According to Heckscher-Ohlin model and the Stolper-Samuelson theorem, after the trade opening, because trade liberalization and expansion of the sector by the intensive use of factors of production will be more revenue, due to trade liberalization and the sector contracted by the intensive use of factors of production will return would be reduced, the income gap will be changed. However, historical experience has shown that trade liberalization on the impact of the income gap is not identified. Based on the traditional international trade theory, this paper discussed trade liberalization on the impact of the income gap and focus on the analysis of the impact of factors. This article is also against the reform and opening up, rapid growth of the national economy while rapidly expanding wealth gap problem in light of the above theoretical basis, from the perspective of the empirical analysis and interpretation. This further promote China's opening-up work has a theoretical and practical significance.Papers first discuss the issue of trade liberalization that in the present circumstances, the degree of dependence on foreign trade is a good sign of the degree of trade liberalization targets, and can use the income gap between urban and rural areas and the Gini coefficient to measure income. To the traditional theory of international trade based on the basis of the selected within the time series, using the empirical method that the income gap between urban and rural residents and the correlation between the presence of trade liberalization, liberalization of trade in selected urban and rural areas within the time-series widening of the gap between the income of residents have an impact on the Granger reasons, trade liberalization through changes in commodity prices, industrial restructuring, competition force structure, changes in government expenditure, the process of urbanization and so on, such as to affect the income gap between urban and rural residents. At this stage that the depth of trade liberalization would cause the income gap between urban and rural residents increased, and further analysis of a note from the long-term development perspective, the expansion would reduce the foreign trade of China's income distribution gap.At last, bringing forward suggestions about how to make full use of our relative advantage, take measurable protection and optimize income distribution system to benefit the low income circle more when pushing forward trade liberalization after China's entry to WTO.