Abstract:
What factors have caused the high gini coefficient and big income gap in our country since the reform and opening up? The authors try to do some research into the correlation between them from the perspectives of international trade and FDI. The empirical test with VEC model shows that the strengthening of the competitiveness in international trade has widened the gap in wealth distribution of our country. The large scale inflow of FDI has inhibited the growth of income gap significantly. At the same time, FDI promotes the growth of export but acts as a negative factor to import. The low wage cost hidden in gini coefficient is also an important reason for the fast growing of international trade.
FAN Ai jun, BIAN Xue zi.An Empirical Analysis of the Relationship between International Trade, FDI and Income Gap in China[J] Economic Survey, 2011,V28(6): 62-66