The Study On The Relationship Between Trade And Migration Of China And America

With the development of globalization, the world is experiencing unprecedented changes. The global resource is more frequently crossing the borders and flowing in the flat world. Especially the human resource, the talented persons are cultivated in the world, working in the world and contested in the world. The flow of talents causes the immigration issues, which draws more and more attention. Compared with America, which has a sound cultivating program, a mature immigration system and absorbs the various talents that are needed by its own development via the immigration, China is facing the loss of talents and the selecting opportunity. Due to the fact that America and China are as each other’s largest trading and the bilateral trade volume increases year by year, the trade has become an important factor affecting the development of the two countries. The issue that whether exists a relation between the Sino-US trade and immigration becomes a research focus. This article presents the related research on this issue and gives a full description and presentation of the Sino-US trade and immigration’s problems. From the existing researches, we know that scholars tend to believe that the relationship between international trade and immigration was positive. Further, some researchers pointed out the relationship was bidirectional causality mutually reinforcing.There is a long history of the immigration between China and America. The earliest documented U.S. immigration data is in1820, and one Chinese emigrated to the U.S.. Every generation, the Chinese immigrating to America have their own characteristics and historical background. Now, the methods that the Chinese immigrates to America are business migration, skilled migration, Chinese students studying in America, Chinese visitors, illegal immigrant and so on. The immigrant motivation are the traditionally pursuit of a sound social security and the pursuit of their further development. The social wealth created by the rapid growth of China’s economic in recent years and the produce of new rich class also promote immigration. The Sino-US trade volume keeps growing in the last23years and will not stagnate in the short term. As U.S. imports from China rapidly progress and U.S. exports to China progress slowly, the U.S. trade deficit with China has maintained and continued growth. The huge trade deficit will not only affect the normal Sino-US trade relations, but also drive the China’s foreign exchange reserves to grow rapidly and abnormally. The Sino-US trade structure is stable, while U.S. exports the capital and technology-intensive goods mainly and China’s exports strongly concentrate in the processing of primary products and labor-intensive products. As the appearance of the economic crisis in recent years, U.S. trade protectionism backflow and a war broke out in the RMB exchange rate between China and U.S.. The U.S. accuses China of manipulating its currency and requires RMB to appreciate. But the forced appreciation of RMB will not reverse the U.S. trade deficit, not solve the employment problem and have an adverse effect of China. Meanwhile, the U.S. has taken various measures of non-tariff barriers to prevent the imports of the Chinese goods and implemented anti-dumping and countervailing investigations on China. The implementation of these policies sets serious obstacles in the Sino-US trade.Then, the traditional H-O model is exploited to discuss the relationship between the Sino-US trade and immigration. After analyzing the relationship via the Edgeworth Box diagram, the complementary relationship between the Sino-US trade and immigration is found. And the relationship between the Chinese immigrant to the US and the Sino-US trade is mutual promotion. Finally, the econometric tools are used to do further analysis in order to verify the analysis conclusion. A model is built up and the relationship is empirically researched by EViews5.0. The stationary test, co-integration and granger causality test are employed in the research process. After analyzing the data, we reach the conclusion that there is a co-integration relationship between the Sino-US trade and immigration, that is to say it’s a long-term equilibrium relationship, and there is a two-way causality relationship between the Sino-US trade and immigration that the trade is the granger cause of the immigration and the immigration is also the granger cause of the trade. Thus, the conclusion is verified. The Sino-US trade can promote the immigration due to three main reasons. One reason is the related personnel and professionals who move to the U.S. along with the offices and branches set up in America when China’s export enterprises expand its market. Another reason is that the sustainable development of our country on the U.S. trade accumulates the wealth of our people and increases the chances of immigration to the U.S. and the third reason is the development of trade in services also bring outflows of the related technical personnel. The immigration could promotes the trade mainly due to the Chinese immigrants’ preference for Chinese products, the information cost of the Sino-US trade which effectively reduced by the immigration and the promotion of the business network and the chinese network which come into being with the chinese immigration.