Interpret Global Economic Imbalances: From Perspective Of Labor Globalization

Since the outbreak of financial crisis, governments have actively taked various rescue measures to reduce the risk of comprehensive and sustained economic recession. However, existing measures have obvious short-term orientation, often create a new bubble to save the old one. Different understanding of the causes of the crisis will lead to different policy adjustment programs. As the underlying reason of financial crisis, resolve global economic imbalances will be the key to grasp the essence of crisis and avoid crisis happening again in the future. I believe that global imbalances reflects the economic geography adjustment caused by new liberal thought and international scientific and technological revolution during accelerated process of labor globalization, but also external appearance of inner contradictions of factor mobility caused by global industrial structure changes.Based on the background of economic globalization, the paper studies the impact of labor globalization on global economic imbalances, and theoretically evaluates its logic mechanism from new perspective of labor globalization. The results shows that economic globalization rolling forward, the new liberalism and the third technological revolution being the institutional basis and technical background, internal factor mobility makes labor globalization and leads to FDI inflows the Asian economies, expands their production and export capacity, formats export-oriented enhanced positive effect; also causes deterioration of national income distribution structure, resulting in negative acceleration effect and creating a path dependence consequence. Under wheel drive of the two causes, Asia emerging countries continues to accumulate huge surplus, and spreads to other countries and global economy by "double loop" mechanism, making the United States and other developed countries formatting large current account deficit, leading to global economic imbalances.On the basis of a sample of major East Asian countries, globalization of labor and FDI, real exchange rate and other macroeconomic variables, the paper uses panel data model to analyze the cause of global economic imbalances during 1990-2008, to accurately quantifies specific impact of labor globalization on imbalances. The results shows that global effective labor supply promotes current account surplus in developing countries, and with the massive FDI inflow, the impact of labor globalization and FDI on surplus accumulation is constantly strengthened. At the same time, underestimating real exchange rate in developing countries and worsening trade interests also play a very important role in the imbalances.Therefore, this article notes that current imbalance is the "crisis in labor globalization " instead of " crisis of labor globalization",is the difficulties of implementing specific policy objectives, not the result of. globalization derailment or legitimacy departure of theory. Developing countries uses opportunities of globalization to implement market-oriented reforms, grasping comparative advantage to go the way of export-oriented is a logical development rights and policy choices, global economic imbalances has its own endogenous and necessity. Finally, the article gives with related policy recommendations, such as promoting economic structural reforms, accelerating economic growth paradigm shift and policy adjustments, focusing on technology innovation, human capital accumulation to maintain sustainable competitive advantage...