The Impact Of Economic Globalization On China 's Social Welfare Level

37 years after “reform and opening-up” police, China has become more and more deeply involved in the globalization of the world economy. China`s foreign trade almost doubled every 4 years, the amount of FDI attracted and used has been growing every year, international competitiveness has been constantly enhanced. According to WTO,China has become the world’s largest country in goods trade in 2013. This is anotherimportant economic breakthrough after becoming the world’s largest foreign exchange reserveand the world’s second largest economy. China has become the second hot spot for investment, following by the U.S.A and only to EU, attracted 280 billion dollars of FDI net inflow in 2011. It can be said that China has become an important force of the world economy that can not be ignored.Globalization of the world economy affects more deeply as China getting involved in more deeply. This effect is multifaceted with a positive side and a negative side also. So what will be the influence of economic globalization on the level of social welfare in China? This is a very valuable issue.The research on this issueprovide a basisfor China figuring out whether or not to continue in-depth participation in economic globalization, how to participate in economic globalization and improve China’s social welfare.This paper makes quantitative analysis using A.K.Sen`s(who won the 1998 Nobel prize in economics) social welfare function. And according to the analysis this paper providescorresponding countermeasures and suggestions.This paper is divided into five parts:Part one,this part introduces the background and significance of the research on the impact of economic globalization on Chinese social welfare, reviews the research of domestic and foreign scholars, and introduces the research methods and structure of this paper.Part two, this part reviews the relevant theories of economic globalization and social welfare function.Part three, this part summarizes the basic situation of China’s participation in economic globalization from two aspects of trade and FDI respectively.Part four, this partmakes quantitative analysis using an empirical study modelon the social welfare influence of economic globalization in China.Firstly, this part fits an effective income determination model which includes economic globalization factors combining the Box-cox model and the Box-Tidwell model based on the provincial panel data of China from 1987 to 2013.Then, brings the income determination function and the Gini coefficient formula into the social welfare function to obtain the empirical study model on the social welfare influence of economic globalization in China.Through the calculation and analysis of the model, quantitative analysis results obtains the influence of economic globalization on the Chinese social welfare level.Part five, this partproposes corresponding countermeasures and suggestionsbased on the qualitative and quantitative analysis results.