Research On The Impact Of Service Trade Opening On China's Income Gap

With the continuous advancement of economic globalization and the emergence of service economy,service trade has become an important indicator to measure a country's trade structure and participation in the global value chain.After the world economic crisis,service industry and service trade have become another new development engine for economic recovery.Accordingly,academia began to study the impact of service trade opening.On the other hand,the income gap of Chinese residents has been widening and becoming increasingly severe.This phenomenon has also led many scholars to discuss.Most of the research perspectives are based on the development of the domestic market economy.It is still a relatively new perspective to observe China's income gap from the external perspective of international trade.Therefore,the question of how the opening of service trade will affect China's income gap has become the starting point of this study.This article analyzes the current situation of China's service trade from different perspectives of scale,structure and international status,and analyzes the current situation of China's service trade opening from the perspective of the overall and sector;from the perspective of industry,region and labor,The current situation of China's income gap is analyzed.Finally,it analyzes the problems and causes of China's service trade and income gap.This article theoretically analyzes the mechanism between service trade affecting income gaps,and reviews the theoretical mechanism of trade affecting income distribution.The traditional trade theory represented by the Stolper & Sammuelson model points out that the equalization effect of the factor price of service trade opening will make the income gap narrow,while the new trade theory represented by the Feenstra & Hanson model points out that the technology spillover effect of service trade opening will make As the income gap widens,due to the simultaneous existence of mechanisms that reduce and widen the income gap,the ultimate effect of service trade depends on the combined effects of the two effects.This paper analyzes the time series data of China from 1982 to 2018 in empirical terms.In the selection of indicators,the concept of the Theil index is introduced.The Theil index of the urban-rural income gap and the Theil index of the labor income gap are used as the explanatory variables to measure the income gap.The external dependence of service trade is used as the explanatory variable,and Taking the actual foreign capital dependence as the control variable,after two empirical studies of the VAR model,it was found that:(1)The increase in the openness of service trade will make the urban-rural income gap widen in the short term,but narrow the urban-rural income gap in the long term.(2)The increase in the openness of service trade will make the labor income gap widen in the short term,and it also has the effect of widening the labor income gap in the long term.Finally,according to the results of the research,relevant suggestions for enlightenment were put forward.