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The Influence Of Foreign Trade On Income Gap In Jiangsu

Posted on:2013-04-26Degree:MasterType:Thesis
Country:ChinaCandidate:J ZhangFull Text:PDF
GTID:2249330371488042Subject:International Trade
Abstract/Summary:
China’s economy development has achieved a great deal since the Opening policy more than30years ago, but at the same time the problem of income inequality has become more obvious. The current income inequality mainly displays in1, urban and rural income inequality, city residents’income are higher than rural residents, and enjoy better social welfare and social security system;2, the regional income inequality,economy of the eastern coastal area is developed, while the middle and west area is backward;3, income of different industries is inequality, even beyond the reasonable level. According to international standard,workers of high-income industry earn twice as many as workers of low-income industry,but in China in2006, it was five times as much, in recent years the gap between the incomes of residents is still widening. The income gap is too big,which can harm social stability, will in turn restrict the development of the economy. Foreign scholars have long researched on international trade and income gap and the relationship between the two, scholars in our country eager the discussion from the year of2000, the reason is that China’s foreign trade development became more vigorous after joining the WTO, although the government takes some measures,foreign trade surplus is still growing, at the same time,domestic polarization has become more obvious,but results of different research are not the same, some studies suggest that the foreign trade development widen the distribution of income gap, while some others suggest that foreign trade development suppress the expand of income disparity.Economic construction and social development of Jiangsu province has been the front in the whole country, the role of foreign trade is very large. but at the same time the income gap of residents in jiangsu province is expanding continually, which has increasingly become the focus of attention.On one hand,income gap of urban and rural residents is widening,on the other hand, economic gap among southern jiangsu, middle of jiangsu and northern jiangsu is large, people’s life level is different. Income gap not only affects the efficiency of the whole economy in jiangsu province, but also will harm the social stability, and eventually threat the coordinated development of the economy and society of jiangsu province. Is there any causal relationship between Foreign trade and income distribution of residents? If it exist, does the foreign trade increase income gap or narrow it? How big is this factor? How to promote foreign trade development and narrow the income gap and realize social justice in the future economic construction? That is what this paper discusses.This paper, based on foreign trade development status and income distribution condition of jiangsu province in recent years, mainly use the data from jiangsu province statistics yearbook, analyze the present situation of foreign trade,distribution of income and the relationship between the two from the view of qualitative and quantitative,put forward some suggestion relevant to how to develop foreign trade, to narrow the income gap, and to realize social justice.First of all, the paper in the first chapter is a literature review, which introduces research achievements about foreign trade and income distribution disparity relations from the economic scholars at home and abroad in recent years.Foreign scholars’ research object basically is the developed country, but the analysis method and the results of the study is of great significance in developing countries, the domestic scholars’research is generally in our country or local area. The conclusion of researchers are not the same, some consider that foreign trade widened the gap between the incomes of one country, some is to the contrary. The second chapter, author makes theory analysis on influence of foreign trade to the income distribution. This paper firstly discusses traditional theory relevant to the influence of international trade to income distribution,then is traditional theory innovation, modify and development; Second part describes five internal mechanism of the influence of foreign trade on the income gap, including product price mechanism, Employment mechanism, the technology progress mechanism, the mechanism of policy forming; It also expounds other related factors which influence on income distribution.The third chapter describes the foreign trade development status and the present situation of the distribution of income in jiangsu province of20years from1990to2010,description of foreign trade includes the expansion of the scale of foreign trade, increase of foreign trade growth rate, dependence on trade continues to deepen,trade methods and trade mainstays are increasingly diverse. Distribution of income status in jiangsu province includes the income gap between the urban and rural residents and regional income gap.The fourth chapter, with the method of co-integration analysis, tests whether there is a long-term equilibrium relationship between the development of foreign trade and the income gap of residents, the conclusion is, foreign trade expands the income gap among residents in jiangsu province.In addition to the foreign trade, the level of economic development, industrial structure, the level of financial deepening and so on are also the factors which influent income distribution of residents. Chapter5, according to the empirical results in this paper, combining with the results of other researchers, puts forward relevant policy suggestions on how to promote foreign trade of further development, to narrow the income gap of residents,to realize social justice.The point of this article is:foreign trade to a certain extent expanded the income gap among residents in jiangsu province, FDI, economic development, financial development are factors which increase the income inequality in jiangsu province, the development of the third industry narrowed the income gap among residents. The income gap in jiangsu province accords with the "reverse U"curve, the main task is to develop the economy, to make "cake" bigger, soon will have the income gap narrowing "inflection point". In the future economy construction, Jiangsu province will continue to adhere to the opening policy, and not only focus on efficiency but also pay attention to fairness in the development of foreign trade, industrial structure adjustment, financial deepening reform,combined with other measures, jointly promote the development of foreign trade,narrow income gap of residents and realize social justice.
Keywords/Search Tags:jiangsu province, foreign trade, income gap
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