A Study Of Foreign Trade's Impact On Income Mobility Of Residents

Since the reform and opening up,China's foreign trade has developed rapidly.At the same time,the income gap between residents has also expanded.Foreign trade has an important effect on the income gap of residents.Thus,there are many researches on this topic in the theoretical circle.However,the influence of foreign trade on the income inequality of residents is often overlooked by scholars.In recent years,the issue of income mobility has received extensive attention from scholars and has become an important tool for analyzing equal opportunities.Studying the relationship between foreign trade and residents' income mobility cannot only regulate excessively high incomes gap,but also alleviate the negative impact of high income gap on social stability,which is of great significance to China at the moment.First,from a perspective of fair opportunity,this dissertation,combining the lasting income theory with neo-classical trade theory,constructs the micro-mechanism of the influence of foreign trade on income flow.On the basis of it,the paper introduces comparative advantage dynamic chemical theory,analyzes the influence of the degree of openness on foreign residents' income mobility,examines the regulatory role of technological progress on the relationship between the two and then puts forward the research hypotheses.Second,the empirical analysis has been done,based on merging the data from the Chinese Family Panel Studies,(CFPS)database from 2010 to 2016 into provincial statistical yearbooks,selecting the change of residents' income class as the agent variable of residents' income mobility,and constructing the panel Ologit model.In the meanwhile,this paper also adopts sub-dividing industry data(including wages and number data)to measure the proxy variable of household income mobility-the quality of regional residents' income mobility to establish a fixed effect model of the provincial panel data,select tool variables using two stages-the least squares method(2SLS)to take robustness tests on empirical analysis results,and finally a robust and consistent estimation is achieved.The major conclusions are as follows:(1)The impact of Degree of foreign trade openness on residents' income mobility is inverted U-shaped.The inflection points derived from panel Ologit model and fixed-effect 2SLS model are respectively 14.6% and 15.1%,which is most conducive to the rise of residents' income status.(2)Whether the number of patent grants by people or R&D investment is as the proxy indicator of technological progress,the interaction terms of foreign trade openness and technological progress are both significantly positive,and the impact of foreign trade openness on residents' income mobility increased with technology Progress and enhancement.Finally,in order to enhance the mobility of income and open up the rising channels of income status of residents of all strata,this paper proposes to speed up the promotion of opening up of foreign trade in the central and western regions,strengthen investment in R&D in the eastern region to improve the quality of export products,and guide the gradient of processing trade to the central and western regions.