Research On Industry Differences In Income Distribution Effects Of Intra-product Trade

Driven by the Internet,the development of trade has been deepened from inter-industry to intra-industry and then to internal products,forming a division of labor within global products.Intra-product division is the division of global value chain among countries.Transnational enterprises in developed countries participate in GVCS as the main chain players,while enterprises in developing countries participate in GVCS to engage in production activities,from which all countries benefit.However,the labor force at all levels participating in the production of global value chain within individual countries benefits unequally.Some of the labor force gains less due to the change of production environment,while others gain more due to the specialization of production.Participation in global product division widens the wage gap between high-skilled workers and low-skilled workers,but it is different to observe the situation of different industries from the industry level.From the perspective of China which is the largest developing country integrated into the global value chain,this paper divided the industries into labor-intensive industries and capital-intensive industries to examine the specific performance of income distribution in different industries.Firstly,this paper illustrates the related concepts of intra-product trade,review the literature from the theoretical and empirical angles and propose the research content,methods,innovation and deficiencies.Secondly,on the basis of Feenstra and Hansonfs theoretical model of how one country influences the wage gap through outsourcing,we extend this theory to analyze the mechanism of the influence of different industries*participation in intra-product trade on workers' wage gap in China's manufacturing industry.Then this paper analyzes the actual situation of the manufacturing industry participating in the intra-product trade and finds that:from the perspective of different industries,the computer industry is the most involved in the international intra-product trade,followed by the chemical and pharmaceutical industries;from the perspective of time,the product specialization degree is deepening because of the reduced tariffs and barriers after China's accession to the WTO,and the participation of each industry in intra-product trade has declined not only multinational enterprises have reduced the demand for intermediate products produced in China but also the influence of the economic crisis after 2007.On the basis of theoretical analysis and current situation analysis,this paper establish the panel data model to investigate the influence of intra-product trade on the income gap in the manufacturing industry.The empirical analysis shows that,in terms of overall manufacturing,intra-product trade makes the wage gap expand within the industry.In terms of different industries,intra-product trade reduces the wage gap of labor-intensive industries and widens the wage gap of capital-intensive industries.Therefore,from the individual level,all levels of workers need to improve their own work quality;From the perspective of policy,the government needs to restrain the unreasonable wage gap,promote marketization,and promote the transformation and upgrading of various industries.In this way,we can not only participate in intra-product trade better,but also narrow the domestic wage gap and achieve relative social equity.