The Analysis Of The Impact Of Products Trade On China's Manufacturing Wage

Economic globalization and the expansion of transnational corporations make the international division into products division. On this basis, there has been products trade.After decades of development, products trade has become an important form of the international trade, which makes western scholars interested in research. The research ranges from the formation of trade theory to empirical analysis of the factors' impact on the level of products trade and the degree of products trade' influence on other economic factors. China has gradually integrated into the international division after the reform and opening up. In particular, the manufacturing industry develops by leaps and bounds under the impetus of the international trade, and becomes the main products trade. As a measure of the manufacturing economic indicators, wages are inevitably impacted by the level of products trade. This article is precisely on this basis to explore the development of China's manufacturing and wage levels, to analyze the relationship between products trade and manufacturing wages, with a view of reasonable explanation of China's manufacturing wage gap.In addition to the introduction and concluding remarks, the article is divided into four chapters.The introduction includes topics' background and significance, literature review, the papers' innovation and shortcoming. First it describes products trade developments of other countries in the context of economic globalization, and the degree China's manufacturing industry participated in products trade. Secondly, it summarizes the current academic circles both at home and abroad in the research of products trade and the latest developments. Finally, innovation and shortcomings of this article has done a brief introduction.The first chapter is an introduction of the products trade-related theory, concentrated in its measure research. As a result of too refined products trade, it's difficult to reflect the levels correctly. Therefore, products trade measure has always been the focus of academic research. This paper introduces three measurement methods: parts and components sum method, the United Nations broad classification, Based on a country's input-output table calculation.Second chapter analyzes the relations of overall manufacturing wages and product trade. First, describe the manufacturing industry's development from the perspective of output and efficiency, and the comparison of data represents that China's manufacturing growth rate is much higher than other countries. Then introduce the status quo of manufacturing wages and development trends. By comparing the draw is: although wages in the manufacturing sector is a significant increase in quantity, there is a continuous downward when wages are measured by the proportion of industrial added value accounted. The wages are even lower compared with other industries. Finally, in the use of linear regression model, this paper has an empirical study on the factors to affect the overall manufacturing wages.In chapter III, the study is further refined, because manufacturing industry is divided into 12 major sectors for analysis. From the perspective of industrial added value, each industry has grown rapidly; the only problem is the growth pace. From the point of profit, 1995-2007 is clearly divided into two stages, at the same time the gap between the levels of industry profits is large. The average wages of sub-sectors is analyzed from the absolute amount and mutual comparison. The results showed that average wages in different sectors also exists a big gap. Finally, the article empirically analyzes the relationship between the average wages of top five industries and products trade with panel data model. The conclusion is that the average wages of capital-and technology-intensive industries have greater impact on the trade in product and the factors are more complex.Chapter IV gives some recommendations of the development of China's manufacturing industry based on the previous two chapters. For labor-intensive industries and capital-and technology-intensive industries were different circumstances, the paper provides corresponding development strategies.