The Effect Of The Opening To The Inequity Of Distribution In Taiwan

Under the background of globalization, the problem of the opening to the outside world and the gap of income distribution has always been the focus of people’s attention. Recently, with the rapid speeding of the opening to the outside world in mainland China, the inequality of income distribution is very severe. In Taiwan, however, the special problems left by history and politics, make it become an independent economy in finance. During the30years, from1953to1980, Taiwan’s economy has realized rapid economic growth while also narrowed the gap between the rich and poor, which is known as the "Taiwan Miracle". Since1980, however, Taiwan’s economic growth lowered than before, and income gap rose constantly, the "miracle" is no longer continued. It has also become the top research topic for many scholars. This article, from theoretical and empirical method, from qualitative and quantitative method, discusses the problem of Taiwan’s opening to the outside world and income distribution.First of all, from the angle of economic theory, this paper states the way and mechanism of international trade and foreign direct investment (FDI) impact on residents’income distribution under the open economy condition.Secondly, this paper states the process of Taiwan’s economic development, opening to the outside world and income distribution. After the deconstruction of Taiwan’s Gini coefficient, we find out the Taiwan’s main source of income inequality. Because the main source of income inequality is from the wage income in Labor department, we want to prove whether the gap between high and low-skilled workers income expand according to the different economic characteristics of the Labor.Then, this paper makes the empirical analysis using the actual data in Taiwan. By establishing the econometrics model of regression, from the aspects of international trade, foreign direct investment and education, the structure changes of labor and other factors on the degradation effects of Taiwan residents income gap.Finally, on the basis of summing up the main conclusions above, this paper puts forward several suggestions of narrowing the income gap in Taiwan, combined with the actual situation of Taiwan.