The Effect Of Country's Global Value Chain Position Change On Domestic Income Distribution

Under the background of economic globalization,cooperation between countries based on global production chains and value chains has become increasingly close,but developed countries and emerging economies have experienced great changes of the gap in domestic income distribution(OECD,2015),which has led to a further thinking in the academic community about the relationship between countries' status in the global value chain and the domestic income gap.The global value chain position indicator(GVC_Position)is an important way to find out the status of a country in the global value chain,but the existing researches rarely see what impact the country's GVC_Position change have on domestic income distribution.In view of this,After a derivation of the mechanism of how the position of global value chains affects domestic income distribution through theoretical analysis and establishing a model,this thesis uses data including TIVA database and SWIID database to establish multinational panel data covering 41 countries to conduct relevant empirical studies on how the global value chain situation of a country affects domestic income distribution at the national,developed and developing countries level.This thesis begins with an analysis of the theoretical foundation that the GVC_Position has an impact on domestic income distribution.Then,it uses the panel data of 41 countries from 1995 to 2011 to measure the GVC_Postilion index and Gini Coefficient of each sample country.After describing the changes of GVC_Position and the Gini Coefficient during the period,the impact of GVC_Position on Gini Coefficient is tested by empirical analysis.Research findings are(1)GVC_Position changes will affect the domestic income gap by changing the domestic labor shares;(2)For a country,the rise of GVC_Position has the effect of narrowing the domestic income gap,especially among developed countries.