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Trade And Wage Gap:Nonlinear Analysis Of Manufacturing Industrial Panel Data In China

Posted on:2017-04-10Degree:MasterType:Thesis
Country:ChinaCandidate:X Y SunFull Text:PDF
GTID:2359330512475728Subject:quantitative Economics
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Since China implemented opening,import and export trade volume increased year by year.The development of trade brought advanced technology and more opportunities,but at the same time income gap between high-skilled labor and low-skilled labor is widening because of advanced technology and labor productivity transmission mechanism brought by trade.The Gini coefficient is a measure of a country's income gap index,and China's Gini coefficient has been a high level in recent years.The polarization and widening of income gap has clearly hindered the sustainable development of China's future economic and society.Wage income is the vast majority of our income,and the expanding of the wage gap is an important manifestation of expanding in income.These results suggested that to some extent trade have an influence on the domestic wage gap.Studying the issue has important practical significance on how to continue to develop foreign trade and further improve the wages and reduce the wage gap.As China's largest industry,manufacturing industry has considerable representation on wage gap.So,This article will take China's manufacturing industry as an example to analysis this problem.The data based on 2005--2014 panel data of 11 manufacturing sub-sectors as the research object,and its foreign trade data as a whole,trade data in developed and developing countries.This paper will analyze this problem according these data mentioned above.First,this paper will analyze the relationship between foreign overall trade and wage gap.Then use trade data for developed and developing country to analyze the impact on wages gap by the level pf trade countries.Finally,according to the empirical results,this paper make some policy suggestions for the promotion of trade development and narrow the wage gap.Based on the above,this paper first introduced the background and significance of the study,explained research methods,reviewed the research literature about the problem and made a summary.Then described the development of trade and domestic wages and other statistical analysis.Specially,this paper set per capita GDP which can represent industry characteristics as a threshold variable,import and export of openness as the core variables that threshold variable affects and analyzed by the overall trade,trade with developed countries,trade with developing countries,and a total of six models.Through the above research,this paper obtained the following conclusion:First,the overall terms of trade,when per capita GDP is low which represent labor-intensive industries,imports increased industry wage gap,exports narrowed,but the extent of the impact different;When per capita GDP is higher which represent technology-intensive industries,the result is the opposite.Second,in consideration of the country's level of development of trade conditions,the result of low per capita GDP is just almost the same as the total trade.In particular,at a particular stage of per capita GDP,import trade for developed countries wage gap has negative impact,and import trade for developing countries wage gap has positive impact.The result of higher per capita GDP based is in contrast with the above conclusion.The size of the industry,the proportion of state-owned enterprises,capital-output ratio of the wage gap has a reverse effect when the proportion of female employees has a positive one.Finally,based on the theoretical analysis and empirical analysis,this paper give relative policy recommendations to the development of China's industry.Which makes China has focused on making foreign trade,absorbed the benefits of trade fully,and further narrow domestic labor wage gaps.
Keywords/Search Tags:foreign trade, the wage gap, developed country, developing country, panel threshold
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