The Impact Of Opening-up On Labor Share

Over 40 years of reform and opening-up,China has become more closely linked with countries around the world.While achieving rapid economic growth,the scale of foreign trade has also expanded rapidly.The rapid economic growth and the expansion of the scale of opening up have led to a qualitative leap in national income.GDP also achieved steady growth.At the same time,however,the value of Labor Income Share in China has shown a downward trend,which is inconsistent with the requirement of constructing a reasonable income distribution pattern under the new economic normal.In the process of research,this paper first collects and sorts out the research literature and results of domestic and foreign trade openness and labor income share,and then analyzes the current situation of China’s trade openness and labor income share,and proposes four kinds of transmission machines for making Trade openness and labor income share.This paper takes the inter-provincial panel data of 29 provinces in China from 1978 to 2017 as the research object,and uses the dependence of import and export trade as the index to measure trade openness.On this basis,other control variables are introduced to enhance the explanatory variables.Explain the persuasiveness of variables.Through the fixed effect model,the impact of trade openness on China’s labor income share is analyzed.The conclusions are as follows: First,import and export trade has curbed the increase of China’s labor income share;second,technological progress will also reduce China’s labor income share;third,FDI plays a smaller role in China’s labor income share;The labor income share is affected by the positive effect of fiscal expenditure and the negative effect of fiscal revenue;fifth,there is a non-linear relationship between the regional economic level and the labor income share.Then,this paper once again examines the impact of trade openness on labor income share,mainly investigating regional effects and threshold effects.The results are as follows: First,the labor income share in the eastern and central and western regions of China is increasing and decreasing according to the increase of export trade.Import trade has reduced the share of labor income in various regions;second,technological progress has a negative impact on the income share of laborers in various regions of China;third,the share of labor income will increase due to foreign direct investment;The share of labor income is affected by fiscal expenditure and fiscal revenue as the overall regression result;fifth,there is a non-linear relationship between regional economic level and labor income share.In addition,empirical analysis shows that foreign trade dependence has a significant single threshold effect on labor income share.This effect indicates that the correlation between labor income share and foreign trade dependence is nonlinear,specifically,with foreign trade.The degree will increase from small to large,and the labor income share will increase first and then decrease.The last chapter is the conclusion and revelation of the full text.