Relationship Between China's Foreign Trade And Income Distribution

An increasingly decrease in tariff rates and adjustment in non-tariff policy have madea big contribution to the development of the foreign trade of China. Since December21,2001, China has joined into the World Trade Organization, which indicated a great stepinto the World Economy for China. Meanwhile, the income distribution gap in China hasbeen widen as well as the increase in poor and rich gap. As an important index in incomedistribution, Gini has always taken part in measuring income situation. When the worldentered into the21stcentury, the Gini index in China has stand above0.4all the time.Furthermore, there has been no clue that it will descend a little bit and even in an ascendtrend. In hence, in the background condition of income distribution widening, it isnecessary for us to make a research on the relationship between foreign trade of China andthe income distribution gap. What’s more, putting forward some suggestions in narrowingincome distribution gap from the perception of foreign trade do has certain practicalsignificance and social value.In this thesis，the relationship between foreign trade and income distribution has beenintroduced by three parts, including six chapters. Part one contains chapter one and two. Inthis part, it mainly described the original intention of the thesis, namely the significance ofthe subject, the approach of the research as well as the creation and shortcomings of thethesis. Then it is about the conclusion and summary of the current domestic and overseaspapers. Meanwhile, the author in this thesis provided her own assumption and thinking,which suggest that in the very beginning of the foreign trade in China, the development offoreign trade can lead to the enlargement in income distribution gap,while after incomedistribution gap rises to the top, foreign trade will decrease the situation. Therefore, therelationship between foreign trade and income distribution gap resembles reverse “U”style.Part two mainly include chapter three and chapter four. In this section, the writerstated the effect on income distribution gap through the perception in the thesis. Frist of all,in chapter three, it is analyzed separately from the aspect of foreign trade in China and theaspect of income distribution gap, which made a well preparation for the latter analyses incorrelationship research. Then, it focused on five approaches that foreign trade can affectincome distribution. They are approaches through price conduction, through industrystructural adjustment, through foreign direct investment,through the advancement intechnology and through the policy of the government, which enabled the enlargement inincome distribution gap. In chapter five and six, which belong to the last part of the thesis, highlighted theformer assumption and thinking through correlation ship analyses, namely the relationshipbetween foreign trade and income distribution gap resembles reverse “U” style. Finally, thethesis made the wholly conclusion from the basis of correlationship analyses. Meanwhile,it provided some suggestions on ease the current situation and decrease income distributiongap. They are industrial reform in foreign trade, foreign strategy on employmentenlargement, labor force skill level increasing as well as the power from government.It is believed by the writer that with the development in foreign trade in China and theincreasingly balance of the economy, foreign trade will absolutely improve the incomelevel, enlarge the employment rate, and narrow the income distribution gap as well.