The Commodity Structure of Trade, Factor Market Distortions and Factor Income Distribution
CHEN Qiu-feng1,2
1.Department of Economic and Management, Huizhou University,Huizhou 516007, China; 2.Department of Economics and Management,South China Agricultural University,Guangzhou 510642, China
Abstract The paper analyses the mechanism of changes in commodity structure of trade and the limited mobility of labor and labor-saving technological progress on income change by introducing Harris-Todaro model to H-O model, and the foreign trade theory into the theoretical framework of the dual economic. It is found that the changes in factor intensity of trade goods have effect on distribution of income; the declination of income of the labor owner may be the result of changes in commodity structure of trade. Capital deepening and labor-saving technological progress are not conductive to workers. As a labor resources relatively rich country, export commodity structure changes from labor-intensive to capital-intensive, and the reason why there will be the phenomenon of departure from the factor intensity may be due to factor market distortions in resource allocation and the development of within product trade.
2013, Vol. 1 
