| This paper focuses on the impact of processing trade on industrial income distribution and income disparity in China with the methods of theoretical analysis and empirical research. In order to lay a solid theoretical support for the empirical research, this paper analyses the development of the processing trade and the industrial income distribution in China. It analyses the impact of processing trade to industrial income distribution and the industrial income disparity as well. This paper analyses the impact of processing trade to industrial income distribution and the industrial income disparity with the Eviews panel data model and the related data among 30 manufacturing sub-divisions from 2005 to 2008. The final result shows that the export of processing trade, industrial labor productivity and the rate of total assets contribution have significantly positive impact on industrial income, but the rate of industrial monopoly has significantly negative influence to the industrial income; the export balance of processing trade, the difference of industrial labor productivity and the difference of industrial monopoly have significantly positive effects on the industrial income disparity, but the balance of the rate of total assets contribution has negative influence on the industrial income disparity. All in all, the export of processing trade aggravates the industrial income disparity in China.At the same time, this paper finds that there is another serious unreasonable phenomenon of income distribution between the owners of labors and capitals in China.According to the results of theory analysis and empirical research, the relevant departments in China should consider the processing trade as an economic policy or a method of reconciliation in the regulation of domestic income distribution. Based on the specific conditions of the industries and resources endowments among different industries in different regions, they could make a moderate adjustment on the industrial income distribution by using the upgrading of the processing trade.Meanwhile, China also should continue to keep pace with the pace of economic globalization and actively undertake a new round of international industrial transfer, continue to expand the scale of processing trade, combined with the relevant adjustment measures to actively promote the transformation and upgrading of processing trade in China. |
