International Trade?Biased Technological Progress And Labor Income Share In China

Since reform and opening up,China's rapid economic growth has obtained the remarkable Chinese "economic miracle".The progress of Chinese integration into the world economy became faster and faster and Chinese foreign trade increase rapidly,especially since the China joined WTO in 2001.Under this background,the Labor Income Share in China fluctuates significantly.It has experienced for ten consecutive years of decline from 1995 to 2007.After the 17th CPC National Congress,The Labor Income Share began to rebound,changes in the overall trend is "U"type structure.The decline and fluctuation of Labor Income Share in China will ultimately affect the sustained growth of China's economy,which is not conducive to the harmonious and stable development of Chinese society.According to the recent research literature,the research on the share of labor income mainly focused on industrial structure,monopoly profit and Biased Technological Progress.There are few articles from international trade to influence China's biased technological progress,thus the impact mechanism of the final impact of labor income is studied.Under the above circumstances,this paper summarizes the existing research results,in previous studies conducted on the basis of the theoretical framework of research,to explore,biased technological progress and international trade between China labor income share memory,from another angle to explore the cause of the China labor income share changes.Firstly,the definition of labor income share is defined.Second,because of the adjustment of the statistical caliber of China in 2004,this paper made some adjustments to the share of labor income in order to maintain the data caliber.Finally,this paper is based on CES Production Function,establish related model into international trade,biased technology progress and labor income share variables,selected from 1993 to 2015,the Chinese provincial data for empirical analysis.The empirical results of this paper show that:(a)China's share of labor income is greatly affected by the industrial structure.The development of China's first industry and tertiary industry is conducive to the improvement of labor income share,while the second industry plays the opposite role.The change of the industrial structure of China's economic development explains the reason why China's labor income curve is "u-shaped".(b)China's capital and labor are complementary,and China's technological progress is in favor of capital.(c)international trade has contributed to China's labor productivity and increased China's Labour income share in the context of Labour complementarity.(d)the overall impact of international trade on the share of labor income is suppressed.(e)the government's fiscal policy has a significant impact on the share of labor incomeFinally,based on the theoretical analysis and empirical results put forward the following suggestions:(a)The government should be appropriate to relax too much control of the third industry,establish a perfect legal system of the third industry support,optimize the industrial structure.(b)Emphasize the ability of independent innovation and enhance financial support for universities,enterprises and other innovative social groups.Reduce the patent application approval process,increase the patent application award.(c)Stick to the development of science and education and develop education to deepen education reform.Improve the proportion of skilled labor force and improve the professional quality of workers.(d)To make a reasonable fiscal revenue and expenditure plan,the government will play its own role in adjusting the national economy at the macro level and improve the country's tax system.