Font Size: a A A

Trade Development Domestic Income Gap Between The Countries Of The North

Posted on:2010-09-23Degree:MasterType:Thesis
Country:ChinaCandidate:X D GongFull Text:PDF
GTID:2199360275492017Subject:World economy
Abstract/Summary:PDF Full Text Request
There are some great disputes in the direction and mechanism of trade's exerting an influence on wage gap in theory horizon. And in real world protest on wage gap resulted from globalization runs up. Meanwhile, current analyses on trade's effects on wage gap between labors with different skills. This paper tries, on the basis of Dinopoulos and Segerstrom's model with two countries and two industrial sectors and through loosing some strict hypotheses of Philippe's analysis, to construct an endogenetic model with two countries and there industrial sectors to analyze the effect on the wage gap.The research is divided into two main parts. The first one is the theoretical deduce part in which the economic model is constructed. Concretely speaking, some hypotheses are firstly set up, based on which three industrial sectors are constructed. Then we perform the utility analysis through adding the product of manufacture sector and the service of service sector into utility function, obtain the results about real interest rate and finally make clear the relation between wage gap and international trade through comparative static analysis.In the second part the theoretical conclusion is validated using real economic data. At first, the paper is to adjust the data relevant to wage and analyze the trend of relative wage level in representative country. Secondly, an econometric model including the variables such as wage gap, trade development, economic development, CPI, ability level, trade union density and so forth is designed, through which we can analyze the direction and mechanism of trade's exerting an influence on wage gap and achieve more credible economic conclusions. Finally some revelations and suggestions are provided.The conclusion is that the relative wage level decreases with the participation in trade of service. This result leads to clear understanding about the relation between trade and wage gap and specific answer of some questions about anti-globalization.
Keywords/Search Tags:Development of trade, Wage gap, High-skilled labor, Low-skilled labor
PDF Full Text Request
Related items