The Mode Of Imbedding In Global Value Chain And The Unbalanced National Income Distribution

During the past30years, China has gain great success in economy growth, but with the increasing economy’ size, the economic structural contradictions, like imbalance of income distribution, are increasingly outstanding, especially the share of work remuneration in GDP keeps dropping. Generally, Chinese economic structural imbalance is regarded as the result of labor’s supply and demand structure as well as the imperfection of wage determination system. However, considering the relativity of income distribution relationship, the relative role of capital and labor is not only affected by the supply and demand structure of production factors, but also in connection with the industrial international competitiveness.This paper focuses on the Global Value Chain imbedding, using qualitative and quantitative analysis, combining model analysis and empirical examining, systematically analyzes the impact of Global Value Chain imbedding on National income distribution. Firstly it describes the current situation of our country’s income distribution system and global economic cooperation, explores the national income distribution relationship against the international division of labor, according to the theory of comparative advantage and other trade theory. Secondly, through a specific factor model containing both dual economy and Global Value Chain imbedding, this paper explores the effect of the division of labor in Global Value Chain on the structure of labor income distribution, providing a theoretical consistency of interpretation for national income distribution evolution. Finally, this paper, using the panel data of part cities in Yangtze River Delta region, proves that the low standing in international division of labor leads to China’s unbalanced national income distribution. This study means that to improve China’s national income distribution relationship, what we should do is not only to adjust the existing income distribution relationships of all economic bodies, but to enhance the income creation ability of China’s economy. And the point is to establish a national innovation system, to arouse the independent innovation capability of our society and, through exploring and cultivating the domestic consumer market, to improve Chinese enterprises’ status in the value chain division.